Challenge You are a U.S.-based currency speculator researching call options on the EUR. The currency spot exchange rate is 1.050 USD per 1 EUR. You find that the price of 1.075-strike calls with one-year remaining maturity is 0.06 USD per EUR. If the risk-free rate in USD is currently 5.00 percent and market estimate of the exchange rate’s volatility is 15.00 percent, what EUR risk-free rate is implied by the observed call price? Enter your answer as a percentage, rounded to the nearest 0.0001%.

You are an options trader who is bullish on a dramatic jump (up or down) in the price of the underlying asset. However, you are concerned that the sensitivity of your option’s price to the jump of the underlying’s price will decay quickly. Therefore, you decide to calculate a new option greek, which you name “color,” which measures how the sensitivity changes over time. How would you find a formula for color?

You are an options trader who is bullish on the volatility of the underlying asset. However, you are concerned that the sensitivity of your option’s price to the volatility of the underlying will decay quickly. Therefore, you decide to calculate a new option greek, which you name “veta,” which measures how the sensitivity changes over time. How would you find a formula for veta?

Which of the following is true about the relation between the implied volatility of option prices and the strikes of the different options? Equity index options exhibit a smile Currency option exhibit a smile Commodities exhibit a smirk that is higher at high strikes

You are assessing a 34-year-old woman who appears to be depressed. You were summoned to see the patient by her husband, who tells you that she won't talk to him. During your interview of the patient, which of the following questions or comments would MOST likely yield a response from the patient?

Suppose an investor wants to replicate a call option on the following stock and that the assumptions of the BSOPM are correct.The underlying stock’s price is $52.25 and the annualized volatility of its log-returns is 46%. The option to be replicated has a strike price of $57.25 and a twelve-month maturity. The risk-free rate is currently 4.00% per year, continuously compounded.How much cash would the investor need to save or borrow to replicate the call?

Which of the following is a sign of severe barbiturate withdrawal?

You and your partner are transferring a 76-year-old woman from a local nursing facility to the emergency department for evaluation of an acute onset of fever. While reviewing the transfer record, you note that the patient was recently treated with daptomycin. This patient MOST likely has:

Assessment of a child in a cold environment would MOST likely yield:

If the source patient's blood tests positive for HIV: