The Performance of Index Funds

question 61

Multiple Choice

The performance of index funds

• A)usually falls short of the performance of actively-managed funds.
• B)provides evidence in support of the notion that stock prices do not depend upon supply and demand.
• C)provides evidence in support of the efficient markets hypothesis.
• D)provides evidence in support of the notion that stock-market participants are irrational.

Identify the differences and functions of call and put options.

Analyze how changes in stock price affect the value of call and put options.

Understand the put-call parity and its implications for option pricing.

Recognize the impact of stock volatility on option pricing.

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