Volatility can be defined as: choose one)
A) The standard deviation of the return, measured with continuous compounding, in one year
B) The variance of the return, measured with continuous compounding, in one year
C) The standard deviation of the stock price in one year
D) The variance of the stock price in one year
Correct Answer:
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Q1: When there are dividends: choose one)
A) It
Q2: For equities it is usually assumed that
Q3: The risk-free rate is 5% and the
Q4: A 7-month European put option on the
Q5: In the Black-Scholes-Merton option pricing formula, Nd1)
Q6: A stock price is $100. Volatility is
Q7: The Black-Scholes-Merton model assumes: choose one)
A) The
Q8: The VIX index measures choose one)
A) Implied
Q9: What is the price of the put
Q10: The Black, Scholes and Merton pathbreaking papers
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