Finance multiple choice options and derivatives


6.Which of the subjoined statements encircling the incoherence is not penny? a. the indicated incoherence repeatedly differs opposite discretions delay incongruous use values b. the indicated incoherence equals the truthful incoherence if the discretion is suitably valued c. the indicated incoherence is determined by gauge and falsity d. the indicated incoherence is approximately liapproximately allied to the discretion value e. none of the overhead

 

7.Consider a supply valued at $30 delay a measure intermission of 0.3. The risk-free rebuke is 0.05. There are put and flatter discretions adapted at use values of 30 and a space to spiritlessness of six months. The flatters are valued at $2.89 and the puts require $2.15. There are no dividends on the supply and the discretions are European. Assume that all businesss insist of 100 shares or one abridge (100 discretions). Use this notice to reply questions 7 and

 

8. What is your gain if you buy a flatter, tarry it to spiritlessness and the supply value at spiritlessness is $37? a. $32.89 b. $30.00 c. $27.11 d. $32.15 e. there is no rendflush

 

The gain = $411

 

I like the choices supposing are incorrect

 

8. Consider a supply valued at $30 delay a measure intermission of 0.3. The risk-free rebuke is 0.05. There are put and flatter discretions adapted at use values of 30 and a space to spiritlessness of six months. The flatters are valued at $2.89 and the puts require $2.15. There are no dividends on the supply and the discretions are European. Assume that all businesss insist of 100 shares or one abridge (100 discretions).

 

Use this notice to reply questions 7 and 8. What is the rend flush supply value at spiritlessness on the business picturesque in example 1? a. $32.89 b. $30.00 c. 27.11 d. $32.15 9. Consider two put discretions differing simply by use value. The one delay the better use value has Select one: a. the inferior rendflush and inferior gain virtual b. the inferior rendflush and main gain virtual