Assume the following: LN(S) and LN(Q) have a correlation coefficient of -0.20, S(0 ) = 45, S(Q) = 55, r = 0.03, ?s = 0.18 ?Q = 0.28, and no dividends. Using formula 20.39, what is the price of a claim that pays 1/?

A) $3.02
B) $2.02
C) $1.02
D) $0.02

D

Business

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Which of the following is not a common legal theory that serves as a basis for a malpractice suit?

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