Selling a commodity futures (entering a contract to make delivery) is a long position.?
Answer the following statement true (T) or false (F)
False
You might also like to view...
Payroll entries are made with data from the
a. wage and tax statement b. employee's earning record c. employer's quarterly federal tax return d. payroll register
An executive summary should normally limit white space so more content can be on the page
a. true b. false
Passive investment in less-developed countries is similar to other developed countries since equity shares are easily transferable worldwide
Indicate whether the statement is true or false
An analyst wants to use the Black-Scholes model to value call options on the stock of Heath Corporation based on the following data: ? The price of the stock is $40.? The strike price of the option is $40.? The option matures in 3 months (t = 0.25).? The standard deviation of the stock's returns is 0.40, and the variance is 0.16.? The risk-free rate is 6%.Given this information, the analyst then calculated the following necessary components of the Black-Scholes model: ? d1 = 0.175? d2 = ?0.025? N(d1) = 0.56946? N(d2) = 0.49003N(d1) and N(d2) represent areas under a standard normal distribution function. Using the Black-Scholes model, what is the value of the call option?
A. $2.81 B. $3.12 C. $3.47 D. $3.82 E. $4.20