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Question
If the risk-free interest rate is rf and equals the fund's benchmark, the portfolio's net asset value is S0, and the hedge fund manager incentive fee is 20% of profit beyond that, the incentive fee is equivalent to receiving ______ call(s) with exercise price ________.
A. .2; S0
B. 1; S0(1 + rf)
C. 1.2; S0
D. .2; S0(1 + rf)
Answer
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Related questions
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Q:
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Q:
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Q:
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D. The answer cannot be determined from the information given.