Hedge fund manager incentive fee

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Reference no: EM131069008

If the risk-free interest rate is Rf and equals the fund's benchmark, the portfolio's net asset value is P, and the hedge fund manager incentive fee is 30% of profit beyond that, the incentive fee is equivalent to receiving ______ call(s) with exercise price ________.

A. 0.3;P

B. 1;P(1+Rf)

C. 0.3;P(1+Rf)

D. 1.3;P(1+Rf)

Reference no: EM131069008

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