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  • Quiz 10

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    Aarham Aziz
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    The document contains sample quiz questions about options. Question 1 asks to complete a table about protective puts used with assets or forward contracts. Question 2 asks to calculate the price of a put option given stock price, exercise price, call option price, and risk-free rate information. Question 3 asks how shareholder and debtholder payoff profiles can be expressed using options.

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    The document contains sample quiz questions about options. Question 1 asks to complete a table about protective puts used with assets or forward contracts. Question 2 asks to calculate the price of a put option given stock price, exercise price, call option price, and risk-free rate information. Question 3 asks how shareholder and debtholder payoff profiles can be expressed using options.

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    7 views5 pages

    Quiz 10

    Uploaded by

    Aarham Aziz
    The document contains sample quiz questions about options. Question 1 asks to complete a table about protective puts used with assets or forward contracts. Question 2 asks to calculate the price of a put option given stock price, exercise price, call option price, and risk-free rate information. Question 3 asks how shareholder and debtholder payoff profiles can be expressed using options.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Quiz 10 – 1 PM

    28 Nov 2023
    Question 1: Complete the table below:
    Outcome at T
    Put Expires In the Money ( Put Expires Out of the Money
    Protective put with asset

    Protective put with forward contract

    Question 2: A stock currently trades at USD 300 per share. An investor is considering the
    purchase of a six-month put on this stock at an exercise price of USD 270. A six-month
    call option with the same exercise price trades in the market at USD 64. What should the
    investor expect to pay for the put if the relevant risk-free rate is 4%?

    Question 3: How can firm’s shareholder payoff profile be expressed in terms of options?
    Quiz 10 – 2:30 PM
    Question 1: Complete the table below:
    Outcome at T
    Put Expires In the Money ( Put Expires Out of the Money
    Protective put with asset

    Protective put with forward contract

    Question 2: A stock currently trades at USD 290 per share. An investor is considering the
    purchase of a six-month put on this stock at an exercise price of USD 260. A six-month
    call option with the same exercise price trades in the market at USD 56. What should the
    investor expect to pay for the put if the relevant risk-free rate is 4%?

    Question 3: How can firm’s debtholder payoff profile be expressed in terms of options?

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