FIN 567 Exceptional Education / snaptutorial.com

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FIN 567 Exceptional Education / snaptutorial.com
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FIN 567 Exceptional Education / snaptutorial.com
FIN 567 Class Project   For more classes
visit www.snaptutorial.com   Assume that you have
500,000 to invest in equities and want to
establish a new portfolio that includes ten (10)
stocks to be selected from the Dow Jones
Industrial Average of 30 companies.  It is also
desired to start with nearly equal
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FIN 567 Exceptional Education / snaptutorial.com
FIN 567 Final Exam   For more classes
visit www.snaptutorial.com   Question 1.     
Question         (TCO E) A stock sells for 60
and the risk-free rate of interest is 10. A call
and a put on this stock expire in one year and
both options have an exercise price of 55. How
would you trade to create a synthetic call
option? If the put sells for 2, how much is the
call option worth?
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FIN 567 Exceptional Education / snaptutorial.com
FIN 567 Midterm   For more classes
visit www.snaptutorial.com   Question 1.     
Question         (TCO A) An order that closes an
existing position is called a(n)
______.   Question 2.      Question         (TCO
A) Which of the following is not a characteristic
of a short call position?   Question 3.     
Question         (TCO E) The owner of a call
that expires in the money (ignore cash settlement
options) ________.  
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FIN 567 Exceptional Education / snaptutorial.com