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Questions and Answers
What is the stock price in 3 months according to the given information?
What is the stock price in 3 months according to the given information?
- $21
- $22 (correct)
- $20
- $18
What is the value of the portfolio today, considering a risk-free rate of 12%?
What is the value of the portfolio today, considering a risk-free rate of 12%?
- $4.50
- $5.00
- $4.3670 (correct)
- $4.00
What is the value of the call option when the stock price is $20 and the strike price is $21?
What is the value of the call option when the stock price is $20 and the strike price is $21?
- $4.367
- $0 (correct)
- $0.633
- $1
What is the value of the riskless portfolio in 3 months?
What is the value of the riskless portfolio in 3 months?
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What is the value of the shares in the portfolio that is long 0.25 shares and short 1 call option?
What is the value of the shares in the portfolio that is long 0.25 shares and short 1 call option?
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