Fight Finance

An 'interest payment' is the same thing as a 'coupon payment'. or ?

(a) The prices of bonds A and B will be more than $100.

(b) The prices of bonds A and B will be less than $100.

(c) Bond A will have a price more than $100, and bond B will have a price less than $100.

(d) Bond A will have a price less than $100, and bond B will have a price more than $100.

(e) Bonds A and B will both have a price of $100.

(a) 0.0005

(b) 0.0006

(c) 0.1603

(d) 0.1738

(e) 0.1909

(a) The dividend yield is equal to ##(r-g)##.

(b) The dividend yield is equal to ##\left( \dfrac{d_1}{p_0} \right)##.

(c) The total return of the stock is equal to ##(r)##.

(d) The total return of the stock is equal to ##\left( \dfrac{d_1+p_0.g}{p_0} \right)##.

(e) The total return of the stock is equal to ##(r+g)##.

(a) Day of the payment date, between the payment date's morning opening price and afternoon closing price.

(b) Night before the payment date, between the previous day's afternoon closing price and the payment date's morning opening price.

(c) Day of the ex-dividend date, between the ex-dividend date's morning opening price and afternoon closing price.

(d) Night before the ex-dividend date, between the last with-dividend date's afternoon closing price and the ex-dividend date's morning opening price.

(e) Day of the last with-dividend date, between the with-dividend date's morning opening price and afternoon closing price.

(a) Project value with the option less project value without the option.

(b) No-arbitrage binomial option pricing model.

(c) Risk-neutral binomial option pricing model.

(d) Gordon growth model.

(e) Black-Sholes option pricing model.

(a) $71.2986

(b) $62.0921

(c) $61.5028

(d) $54.276

(e) $53.5612

(a) 30% pa

(b) 26.236426% pa

(c) 10.254219% pa

(d) 10.25% pa

(e) 10% pa

(a) Long call.

(b) Short call.

(c) Long put.

(d) Short put.

(e) Short future.