Fight Finance

(a) The expected total return of the stock.

(b) The expected capital return of the stock.

(c) The expected dividend return of the stock.

(d) The expected income return of the stock.

(e) The expected growth rate of the stock price.

(a) 900

(b) 2,700

(c) 2,722.1

(d) 2,843.71

(e) 34,424.99

(a) ##D(1+r_D)##

(b) ##D/(1+r_D) ##

(c) ##D.r_D ##

(d) ##D / r_D##

(e) ##NI.r_D##

(a) 1.180572 AUD per USD

(b) 0.848966 AUD per USD

(c) 0.847047 AUD per USD

(d) 0.755566 AUD per USD

(e) 0.752954 AUD per USD

(a) ##r_\text{total} = \dfrac{c_1+p_1-p_0}{p_0} ##

(b) ##r_\text{total} = \dfrac{c_1+p_1}{p_0} - 1##

(c) ##r_\text{total} = \dfrac{c_1}{p_0} + \dfrac{p_1-p_0}{p_0}##

(d) ##r_\text{total} = \dfrac{c_1}{p_0} + \dfrac{p_1}{p_0} ##

(e) ##r_\text{total} = \dfrac{c_1}{p_0} + \dfrac{p_1}{p_0} - 1##

(a) Futures quotes displayed on the exchange change continuously.

(b) Futures prices written in existing futures contracts are fixed, they do not change since they’re written in the legal contract.

(c) One year futures quotes equal the market’s expectation of the underlying asset price in one year. For this reason futures markets are a good predictor of the underlying asset prices.

(d) Futures prices can be calculated based on the spot price of the underlying asset compounded forward at the total opportunity cost of capital, less any storage costs and plus any income yields such as dividends.

(e) The futures price quote and the underlying asset's spot price will converge over time. At the future's expiry they’ll be equal.

(a) ##\pi_{LP}=-max⁡(S_T-X_T,0) - f_{LP,0}##

(b) ##\pi_{LP}=-max⁡(X_T-S_T,0) + f_{LP,0}##

(c) ##\pi_{LP}=max⁡(S_T-X_T,0) - f_{LP,0}##

(d) ##\pi_{LP}=max⁡(X_T-S_T,0) + f_{LP,0}##

(e) ##\pi_{LP}=max(X_T-S_T,0) - f_{LP,0}##

(a) ##N[d_1]##

(b) ##N[d_2]##

(c) ##−N[−d_1]##

(d) ##−N[−d_2]##

(e) ##N[−d_2]##

(a) Home-production such as Grandma babysitting her grand-children for free.

(b) Production in the under-ground economy such as work paid for in cash to evade the tax authorities.

(c) Production in the wild, such as when kangaroos multiply in the bush.

(d) Goods produced and exchanged in the barter economy that are not reported to the tax authorities.

(e) Inventory build-up such as goods produced in a factory that were sold to a wholesaler but have not yet been sold to a retailer or consumer.

If a call option is in-the-money, then the spot price (##S_0##) is than, than or to the call option's strike price (##K_T##)?