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The following information is given about options on the stock of a certain company.
S0 = 23 X = 20
rc = 0.09 T = 0.5
2 = 0.15
No dividends are expected.
Use this information to answer questions 1 through 8.
-The call's vega 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 0.05. )
Trading Security
A financial instrument held by a firm primarily for the purpose of selling it in the short term for profit.
Available-for-sale Security
Financial securities that are not classified as held-for-trading or held-to-maturity, and thus can be sold in the market.
Accounting
The systematic process of recording, summarizing, analyzing, and reporting financial transactions of a business or individual.
Investment
The act of allocating resources, usually capital, with the expectation of generating an income or profit.
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