-If Silver and Platinum Are the Only Two Stocks in the Index

question 20

Multiple Choice

-If Silver and Platinum are the only two stocks in the index, what is the equal -weighted index return?

• A) 5.89%
• B) 4.48%
• C) 5.95%
• D) 4.04%
• E) 5.36%

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Definitions:

Exercise Price

The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Time To Expiration

The period remaining until the expiration date of a contract, such as an option or futures contract.

Stock Price

The cost of purchasing a share of a company, which can fluctuate based on market conditions.

Intrinsic Value

The actual, inherent value of a financial security, determined through fundamental analysis without reference to its market value.