-Consider the End of Day Prices for ANZ and BHP

question 38

Multiple Choice

$\begin{array}{|c|c|c|}\hline \text { Day } & \begin{array}{c}\text { BHP price } \\\text { (end of day) }\end{array} & \begin{array}{c}\text { ANZ price } \\\text { (end of day) }\end{array} \\\hline \text { Monday } & \$ 18.20 & \$ 24.50 \\\hline \text { Tuesday } & \$ 19.00 & \$ 24.80 \\\hline \text { Wednesday } & \$ 17.80 & \$ 25.90 \\\hline \text { Thursday } & \$ 16.55 & \$ 26.00 \\\hline\end{array}$
-Consider the end of day prices for ANZ and BHP for Monday through Thursday.Suppose an investor short sells BHP over this period,calculate their continuously compounded return to the investor.

• A) \(-9.97 \%\)
• B) \(-9.95 \%\)
• C) \(9.50 \%\)
• D)\(9.97 \%\)

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Definitions:

Fee Simple Absolute

A type of ownership of real property that grants the owner limitless, perpetual rights to the property, including the rights to use, sell, or bequeath the property.

Ownership Rights

Legal rights that confer the ability to use, control, and dispose of property or an asset.

Implied Renewal

Suggests the automatic extension of a contract based on certain actions or the lack of termination notice by any party involved.

Lease Term

The duration for which a lease agreement is effective, typically specified in months or years.