Blog

What is the expected return on this stock given the following information? State of the Economy Probability E( R) Boom .25 20% Normal .55 15% Recession .20 −12% exam spreadsheet (8).xlsx

A stock is currently selling for $46.50. A 3-month put option with a strike price of $50 has an option premium of $5.05. The risk-free rate is 5% and the market rate is 8.75%. What is the option premium on a 2-month call with a $30 strike price? Assume the options are European style. exam spreadsheet (8).xlsx

A call option with 6 months to expiration currently sells for $2.05. A put option with the same expiration sells for $.60. The options are European style. The risk-free rate is 3.0% and the strike price of both options is $50. What is the current stock price? exam spreadsheet (8).xlsx

What is the put option premium given the following information? Time (years) 0.25 Strike price $ 40.00 Stock price $ 37.00% Risk-free rate 2.00% Volatility 30% exam spreadsheet (8).xlsx

What is the expected return on this stock given the following information? State of the Economy Probability E(R) Boom .4 7% Recession .6 −7% exam spreadsheet (8).xlsx

A portfolio consists of the following securities. What is the portfolio weight of Stock C? Stock Number Shares PPS A 200 $48 B 150 $33 C 350 $21 exam spreadsheet (8).xlsx

Stock A has a standard deviation of 17% per year and Stock B has a standard deviation of 14% per year. The correlation between Stock A and Stock B is .50. You have a portfolio of these two stocks wherein Stock B has a portfolio weight of 40%. What is your portfolio variance? exam spreadsheet (8).xlsx

The nurse manager is interviewing graduate nurses to fill existing staffing vacancies. When hiring graduate nurses, the nurse manager realizes that they will probably not be considered “competent” until they complete which task?

A call option with 1 month to expiration currently sells for $.70. A put option with the same expiration sells for $1.10. The options are European style. The risk-free rate is 3% and the strike price of both options is $18.00. What is the current stock price? exam spreadsheet (8).xlsx

A toddler is admitted with severe dehydration due to acute gastroenteritis. The physician orders oral rehydration therapy (ORT). Which finding indicates that ORT is effective?