GradePack

    • Home
    • Blog
Skip to content
bg
bg
bg
bg

GradePack

An increase in which two of the following will have a negati…

An increase in which two of the following will have a negative effect on the value of a put option?risk-free interest ratetime to option maturityunderlying stock priceoption strike price

Read Details

A portfolio consists of the following securities. What is th…

A portfolio consists of the following securities. What is the portfolio weight of Stock C?StockNumber SharesPPSA200$48B150$33C350$21

Read Details

Which one of the following options is in the money?

Which one of the following options is in the money?

Read Details

Which one of the following variables is NOT included in the…

Which one of the following variables is NOT included in the Black-Scholes option pricing model?

Read Details

What is the variance of the returns on a security given the…

What is the variance of the returns on a security given the following information?State of the EconomyProbability of State of EconomyRate of Return if State OccursBoom.0527%Normal.3015%Recession.65−22%

Read Details

An investor owns shares of EZ stock. Which of the following…

An investor owns shares of EZ stock. Which of the following strategies can the investor use to hedge the risk associated with a price decrease in EZ stock?buy call optionswrite call optionsbuy put optionswrite put options

Read Details

A group of stocks and bonds held by an investor is called wh…

A group of stocks and bonds held by an investor is called which one of the following?

Read Details

What is the expected return on this stock given the followin…

What is the expected return on this stock given the following information?State of the EconomyProbability E( R)Boom.2520%Normal.5515%Recession.20−12%

Read Details

You are managing a pension fund with a value of $320 million…

You are managing a pension fund with a value of $320 million and a beta of 1.70. You are concerned about a market decline and wish to hedge the portfolio. You have decided to use SPX calls. How many contracts do you need if the delta of the call option is 0.64 and the S&P index is currently at 3,250? Note: Do not round intermediate calculations. A negative value should be indicated by a minus sign. Round your answer to the nearest whole number. Do include the $ sign.

Read Details

You have an equity portfolio valued at $1.22 million that ha…

You have an equity portfolio valued at $1.22 million that has a beta of .98. You have decided to hedge this portfolio using SPX call option contracts. The S&P 500 index is currently 3,092. The option delta is 0.639. How many option contracts must you write to effectively hedge your portfolio?

Read Details

Posts pagination

Newer posts 1 … 38,384 38,385 38,386 38,387 38,388 … 77,898 Older posts

GradePack

  • Privacy Policy
  • Terms of Service
Top