What is the expected return on this stock given the following information?State of the EconomyProbability E( R)Boom.2520%Normal.5515%Recession.20−12%

What is the variance of the returns on a security given the following information?State of the EconomyProbability of State of EconomyRate of Return if State OccursBoom.0527%Normal.3015%Recession.65−22%

Which one of the following variables is NOT included in the Black-Scholes option pricing model?

Which one of the following is the lower price bound for the intrinsic value of an American call option on a stock?

Which one of the following statements is correct concerning the Black-Scholes option pricing model?

Suppose you purchase seven call contracts on Macron Technology stock. The strike price is $75, and the premium is $4.40. If, at expiration, the stock is selling for $83 per share, What is your net profit? (Do not include the $ sign)

Correlation is the:

Which one of the following is the lower price bound for the intrinsic value of an American put option on a stock?

An increase in which two of the following will have a negative effect on the value of a put option?risk-free interest ratetime to option maturityunderlying stock priceoption strike price

You own 200 shares of Delta stock, which is currently worth $33 a share. You just paid an option premium of $.55 to buy two put contracts on this stock with a strike price of $30. What is the maximum loss per share you are avoiding by purchasing the option contract?