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

Business

You might also like to view...

When two products from different companies are promoted together, using one consumer promotion, it is a(n):

A) intracompany tie-in B) intercompany tie-in C) overlay D) premium

Business

It is advisable for you to make personal interpretations of your organization's customer-service policies and procedures, especially in situations with legal repercussions

Indicate whether the statement is true or false

Business

The number of sentences does not determine whether a section of text is a ____ the unity and coherence of ideas among those sentences does.

A. call-out B. independent clause C. paragraph D. list

Business

Individuals must be able to present problems, identify concerns, and challenge the organization in such a way that they are not punished for providing this input, even if the issues raised are sensitive and highly politicized.

Answer the following statement true (T) or false (F)

Business