The Following Information Is Given About Options on the Stock $\sigma$

question 32

Multiple Choice

The following information is given about options on the stock of a certain company.
S₀ = 23 X = 20
r_c = 0.09 T = 0.5
$\sigma$ ² = 0.15
No dividends are expected.
Use this information to answer questions 1 through 8.
-To construct a riskless hedge,the number of puts per 100 shares purchased is: (Due to differences in rounding your calculations may be slightly different."none of the above" should be selected only if your answer is different by more than 0.01. )

• A)0.7580
• B)0.2420
• C)-0.2480
• D)-0.6628
• E)none of the above

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Task Force

A temporary group of people formed to carry out a specific mission or project, or to solve a problem that requires a multi-disciplinary approach.

Quality Team

A group of individuals working together with a focus on achieving high standards of performance and outcomes in their tasks or projects.

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A role responsible for planning, executing, and closing projects, overseeing the team, and ensuring the project meets its goals and deadlines.

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Organizational structures with fewer levels of management and a broader span of control, which often result in improved communication and faster decision-making.