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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Definitions:

Voir Dire

Voir dire is a legal process in which attorneys question prospective jurors to determine any biases or inability to serve impartially in a jury.

Objection

A legal term referring to a statement by an attorney during a trial, disagreeing with a method or evidence presented by the opposition.

In Limine

A legal term referring to a procedural motion made to the court, typically before a trial begins, to request that certain evidence be deemed inadmissible or not shown to the jury.

Alternate Jurors

Additional jurors selected in trials who replace any original jurors unable to complete their duty.