Exhibit 22.3
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A stock currently trades for $130 per share. Options on the stock are available with a strike price of $125. The options expire in 10 days. The risk free rate is 3% over this time period, and the expected volatility is 0.35.
-Refer to Exhibit 22.3.Calculate the price of the put option.
A) $1.086
B) $0.862
C) $6.234
D) $0.623
E) $2.317
Correct Answer:
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Q58: In the Black-Scholes model N(d₁)represents the
A) Hedge
Q59: Which of the following is not a
Q60: If the hedge ratio is 0.50,this indicates
Q61: Exhibit 22.2
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Q62: Exhibit 22.3
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Q64: Exhibit 22.2
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Q65: Exhibit 22.3
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Q66: Exhibit 22.1
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Q67: Exhibit 22.2
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Q68: Exhibit 22.2
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