The premium on a long term call option on the market index with an exercise price of 950 is $12.00 when originally purchased. After 6 months the position is closed and the index spot price is 965
If interest rates are 0.5% per month, what is the Call Payoff?
A)
$2.64
B)
$12.00
C)
$12.36
D)
$15.00
Answer:
D
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Indicate whether the statement is true or false
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A. call-out B. independent clause C. paragraph D. list
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