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25. Sexual harassment -which violates Title VII of the Civil Rights Act of 1964-involves discrimination against a person based on his or her gender.

The price of a European call option on a non-dividend-paying stock with a strike price of $[k] is $[c]. The stock price is $[s0], the continuously compounded risk-free rate (all maturities) is [r]% and the time to maturity is one year. What is the price of a one-year European put option on the stock with a strike price of $[k]?

An interest rate is [a]% per annum with annual compounding. What is the equivalent rate with continuous compounding (in %)?

The current price of a non-dividend-paying stock is $[s0]. Over the next six months it is expected to rise to $[su] or fall to $[sd]. Assume the risk-free rate is zero. What is the risk-neutral probability of that the stock price will be $[su]? Write your answer in decimals. That is, if your answer is 50%, put in 0.5.

42. What are your personal ‘take aways’ from this class using the assignments, projects, lectures, PPTs, discussions, or case studies? In other words, what did you learn that stood out to you? This is a 6 point essay question so use at least 5 or 6 healthy sentences. ‘Essay’ means to write out your thoughts.

The current price of a non-dividend paying stock is $[s0]. Use a two-step tree to value a European call option on the stock with a strike price of $[k] that expires in 6 months. Each step is 3 months, the risk free rate is [r]% per annum with continuous compounding. What is the option price when u = [u] and d = [d].

“Efficiency” in management is defined as getting the job done in the quickest manner possible  while spending the least money and least effort possible.

What is the cash settlement if a call futures option on 50 units of the underlying asset is exercised?

One futures contract is traded where both the long and short parties are closing out existing positions. What is the resultant change in the open interest?

Which of the following is NOT an option open to the party with a short position in the Treasury bond futures contract?