For an Option on Futures, the Volatility Is 35%, the Time

question 10

Multiple Choice

For an option on futures, the volatility is 35%, the time step is three months, and the risk-free rate is 5%. What is the Cox, Ross, Rubinstein parameter, u?

• A) 1.34
• B) 1.29
• C) 1.09
• D) 1.19

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Definitions:

AC Loads

Electrical loads that operate with alternating current, commonly found in household and industrial applications.

Metal Oxide Surge Suppressor

A device that protects electrical equipment from voltage spikes by shunting excess voltage to the ground through a metal oxide varistor.

Troubleshooting Guide

A resource that provides systematic instructions or advice for identifying, diagnosing, and resolving problems or malfunctions.

Input Module Circuit

A part of PLC systems designed to read and process incoming signals from various sensors before feeding them into the control logic.