A) 2.9 percent
B) 3.0 percent
C) 4.1 percent
D) 3.7 percent
E) 3.2 percent
G) B) and D)
Correct Answer
verified
Correct Answer
verified
A) $26,203
B) $25,845
C) $24,287
D) $25,941
E) $23,568
G) C) and D)
Correct Answer
verified
Correct Answer
verified
A) between zero and one.
B) less than zero.
C) greater than zero.
D) greater than or equal to zero.
E) less than or equal to zero.
G) A) and B)
Correct Answer
verified
Correct Answer
verified
A) Increasing the time to maturity may not increase the value of a European put.
B) An increase in time decreases the value of a call option.
C) Exercising an American option is always more valuable than selling the option.
D) Call options tend to be less sensitive to the passage of time than are put options.
E) Vega measures the sensitivity of an option's value to the passage of time.
G) A) and E)
Correct Answer
verified
Correct Answer
verified
A) Theta
B) Vega
C) Rho
D) Delta
E) Gamma
G) A) and E)
Correct Answer
verified
Correct Answer
verified
A) −.01872
B) −.04621
C) −.05047
D) −.02950
E) −.20356
G) A) and E)
Correct Answer
verified
Correct Answer
verified
A) −$1,105
B) −$1,050
C) −$1,115
D) −$1,150
E) $0
G) B) and D)
Correct Answer
verified
Correct Answer
verified
A) The price of an American put is equal to the stock price minus the exercise price.
B) The value of a European call is greater than the value of a comparable American call.
C) The value of a put is equal to one minus the value of an equivalent call.
D) The value of a put minus the value of a comparable call is equal to the value of the stock minus the exercise price.
E) The value of an American put will equal or exceed the value of a comparable European put.
G) A) and C)
Correct Answer
verified
Correct Answer
verified
A) $13,506
B) $13,049
C) $14,179
D) $13,255
E) $12,916
G) B) and D)
Correct Answer
verified
Correct Answer
verified
A) option premium on a call with a specified exercise price.
B) rate of return on the underlying asset.
C) volatility of the risk-free rate of return.
D) rate of return on a risk-free asset.
E) option premium on a put with a specified exercise price.
G) A) and C)
Correct Answer
verified
Correct Answer
verified
A) European put options are more valuable than comparable American put options.
B) Exercising a well-into-the-money American put option is generally not a good idea.
C) It is never optimal to exercise an American call option early.
D) You should wait to exercise a put option if the stock price falls to zero.
E) You are better off exercising an in-the-money call option than selling it.
G) B) and E)
Correct Answer
verified
Correct Answer
verified
A) assume the equivalent call is worthless and then apply the put-call parity formula.
B) have to compute the value of the put as if it is a call and then apply the put-call parity formula.
C) subtract the value of an equivalent call from 1.0.
D) subtract the value of an equivalent call from the market price of the stock.
E) multiply the value of an equivalent call by e−ʳᵗ.
G) B) and D)
Correct Answer
verified
Correct Answer
verified
A) $.37
B) $.73
C) $.87
D) $1.10
E) $1.18
G) A) and E)
Correct Answer
verified
Correct Answer
verified
A) intrinsic value.
B) volatility.
C) rate of time decay.
D) sensitivity to changes in the value of the underlying asset.
E) sensitivity to changes in the risk-free rate.
G) C) and D)
Correct Answer
verified
Correct Answer
verified
A) $2.47
B) $34.80
C) $38.00
D) $5.63
E) $40.00
G) B) and C)
Correct Answer
verified
Correct Answer
verified
A) American call
B) European call
C) American put
D) European put
E) Either an American or European put
G) A) and D)
Correct Answer
verified
Correct Answer
verified
A) $89,760
B) $71,622
C) $309,760
D) $130,240
E) $539,216
G) B) and D)
Correct Answer
verified
Correct Answer
verified
A) divided by delta.
B) divided by (1 − Delta) .
C) divided by (1 + Delta) .
D) multiplied by (1 − Delta) .
E) multiplied by delta.
G) B) and D)
Correct Answer
verified
Correct Answer
verified
Showing 61 - 78 of 78
Related Exams