Use VaR techniques to determine the cost of insurance on a risky investment. The investment asset has a value of $150 and pays no dividend. The historical standard deviation of the asset is 20% and the expected return on the asset is 15%
At the 95% confidence level, what is the price of a put option that insures the asset over the next 6 months?
A) $0.33
B) $1.25
C) $2.65
D) $6.56
A
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Which of the following is a characteristic of a mass-market segment in an emerging nation?
A) full access to globalized media B) emphasis on social connectedness in its culture C) letter writing replaced by SMS messages D) high household income
In hierarchical clustering, the solution may depend on the order of cases in the data set
Indicate whether the statement is true or false
For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used.
A. B. Negligence in filing a return. C. Filing an improper refund claim. D. Failure to pay a tax that is due. E. Undervaluation of a reported item. F. Failure to deposit withholding tax. G. Preparer penalty for taking an unreasonable tax return position. H. I. Substantial understatement of tax liability. J. Preparer penalty for reckless conduct.
On January 1, a company issues bonds dated January 1 with a par value of $400,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $383,793. The journal entry to record the second interest payment using the effective interest method of amortization is:
A. Debit Interest Expense $12,648.28; debit Premium on Bonds Payable $1,351.72; credit Cash $14,000.00. B. Debit Interest Expense $12,648.28; debit Discount on Bonds Payable $1,351.72; credit Cash $14,000.00. C. Debit Interest Expense $15,405.79; credit Discount on Bonds Payable $1,405.79; credit Cash $14,000.00. D. Debit Interest Expense $15,351.72; credit Discount on Bonds Payable $1,351.72; credit Cash $14,000.00. E. Debit Interest Payable $14,000.00; credit Cash $14,000.00.