Refer to Instruction 10.1. The cost of a put option to CVT would be:
A) $52,500.
B) $55,388.
C) $58,275.
D) There is not enough information to answer this question.
Answer: D
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In a report designed to organize a new task force, the close should
A) identify the report's authors. B) include an analysis of the data you've presented. C) list the action that you would like readers to take. D) discuss why the report was written. E) describe how tasks will be broken down.
A portfolio manager in charge of a portfolio worth $10 million is concerned that stock prices might decline rapidly during the next six months
and would like to use put options on an index to provide protection against the portfolio falling below $9.5 million. The index is currently standing at 500 and each contract is on 100 times the index. What position is required if the portfolio has a beta of 1? A. Short 200 contracts B. Long 200 contracts C. Short 100 contracts D. Long 100 contracts