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Question
The current stock price of KMW is $27, the risk-free rate of return is 4%, and the standard deviation is 30%. What is the price of a 63-day call option with an exercise price of $25?A.$2.50
B.$2.65
C.$2.89
D.$3.12
Answer
This answer is hidden. It contains 1 characters.
Related questions
Q:
Passive investors with well-diversified international portfolios _________.
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B. can expect very large diversification gains from their international investing
C. do not need to be concerned with hedging exposure to foreign currencies
D. can expect returns to be better than the EAFE on a consistent basis
Q:
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A. Equity and Foreign Exchange
B. Europe, Australasia, Far East
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Q:
What is the proper strategy to capture alpha given the following data? A portfolio generates an annual return of 14%, a beta of 1.5, and the market index returns 12%. The risk free rate is 3%.
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Q:
Consider a hedge fund with $200 million at the start of the year. The benchmark S&P 500 Index was up 16.5% during the same period. The gross return on assets is 21%, and the expense ratio is 2%. For each 1% above the benchmark return, the fund managers receive a .1% incentive bonus.
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Q:
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Q:
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Q:
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Q:
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I. WEBS can be shorted.
II. WEBS trade continuously on the AMEX.
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Q:
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Q:
The risk-free rate in the United States is 4%, and the risk-free rate in Japan is 1.2%. If the spot rate of yen to dollars is 105, what is the likely yen-per-dollar forward rate?
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Q:
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B. a cross-hedge
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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A. sell S&P 500 Index futures
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Q:
You are currently long in a futures contract. You instruct a broker to enter the short side of a futures contract to close your position. This is called __________.
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Q:
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Q:
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B. stock prices may fall by a larger amount than the model assumes
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Q:
The time value of a call option is likely to decline most rapidly ________ days before expiration?
A. 10
B. 30
C. 60
D. 90