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You have purchased a call option contract on Smith & Smith common stock. The option contract is for 100 shares. The option has an exercise price of $ 43.00 and S&S’s stock currently trades at $40.00. The option premium is quoted at $ 2.00. Show your work.
A) If the stock price rises to $42.00, would you exercise or not exercise the option and what would be your gain or loss?
B) You will make a profit on the option if the S&S stock price rises above what amount? To earn a profit, you must recoup the price you paid for the call, plus the exercise price:
Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .97. What are the Sharpe and Treynor ratios for the fund?
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1- explain the basic differences between the operation of a currency forward market and a futures market?2- in the
The date of death for a widow was 2012. If the estate was valued at $7,100,000 and the estate was taxed at 35 percent. What was the heir’s tax liability? (Round your answer to the nearest dollar amount)
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