Which of the following is equivalent to a long position in a European call option?
A. A short position in a cash-or-nothing put option plus a long position in an asset-or-nothing put option
B. A long position in an asset-or-nothing put option plus a long position in a cash-or-nothing put option
C. A long position in an asset-or-nothing call option plus a long position in a cash-or-nothing call option
D. A long position in an asset-or-nothing call option plus a short position in a cash-or-nothing call option
D
A long position in a European call is equivalent to a long position in an asset-or-nothing call option (this is worth S0N(d1)) and a short position in a cash-or-nothing call option (this is worth –Ke-rTN(d2))
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If you have to decline an offer of employment, what can you do to leave the door open for future opportunity?
A) Call and explain why you are not taking the job B) Call the company and explain why you don't want to work for them C) Write a sincere, tactful letter declining the job D) Write a sincere letter stating what would have made the offer more appealing E) Call and explain why the other company is a better company
What should Lindell offer to John to rectify the situation?
A) Lindell should send John two new machines. B) Lindell should consult with John to find out what would help him regain trust in Lindell and in Hoseke Corporation. C) Lindell should refund John's money. D) Lindell should discount any further purchases by half. E) Lindell should demote the head of the shipping department.