![lizbethh62](/avatars/19195.jpg)
lizbethh62
05.05.2020 •
Business
A portfolio manager in charge of a portfolio worth $10 million is concerned that the market might decline rapidly during the next six months and would like to use options on an index to provide protection against the portfolio falling below $9.5 million. The index is currently standing at 500 and each contract is on 100 times the index. What should the strike price of options on the index be the portfolio has a beta of 0.5? Assume that the risk-free rate is 10% per annum and the dividend yield on both the portfolio and the index is 2% per annum.
Solved
Show answers
More tips
- S Style and Beauty How to Choose the Perfect Hair Color?...
- C Computers and Internet Best iPad Games: Our Opinion...
- A Animals and plants Man s Best Friend: Which Dog Breed Is the Most Friendly?...
- H Health and Medicine 10 Simple Techniques on How to Boost Your Mood...
- G Goods and services How to Choose the Right High Chair for Your Baby?...
- S Style and Beauty Learn how to tie a keffiyeh on your head like a pro...
- S Style and Beauty How to braid friendship bracelets?...
Answers on questions: Business
- B Biology 1. which industries do you think will have economic growth and new jobs as a result of the Paris agreement? 2. which industries do you think will be harmed and have job losses...
- M Mathematics A study followed 900,000 US adults from 1992 to 2008. At baseline, all participants were screened and determined to be cancer free and their body mass index (BMI) was calculated....
- M Mathematics What is the sum of the fractions? Use the number line to help find the answer. Three-fifths + (Negative StartFraction 7 over 5 EndFraction A number line going from negative 2...
Ответ:
As Elliot wants to open a checking account and is searching for best option at different bank which is near to his house. The possible benefits or fees that may differ among the checking accounts may include
- A minimum amount of money to open an account.
- The cost/charges for a monthly statement.
- Service charges for the local or international transaction.
- Monthly withdraw limitation, this may differ as per Elliot's age.
- An interest rate or overdraft fee charged from Elliot.
Once Elliot finds the best option he may open the checking account in the bank that suits him.