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NEW QUESTION: 1
If the current stock price is $100, the risk-free rate of interest is 10% per year, and the value of a put option expiring in 1 year on this stock at a strike price of $110 is $5. What is the value of the call option with the same strike?
A. $4.55
B. $5
C. $15
D. $10
Answer: B
Explanation:
Explanation
We can use the put-call parity to estimate the value of the call option in this case.
The put-call parity can be expressed as:
Value of call - Value of put = Spot price - Exercise price discounted to the present Substituting the values we know:
Value of call - $5 = $100 - $110/(1 + 10%); which implies the value of a call is also $5.
Choice 'a' is therefore the correct answer.
Note about interest rates: How do we know if the interest rate provided in the question is continuous or discrete? For short periods of time, the difference between discrete and continuous exchange rates tends to be not material. For ease of computation, use discrete rates (as above), and it should allow you to answer the question.

NEW QUESTION: 2

A. Option B
B. Option C
C. Option A
D. Option D
Answer: D

NEW QUESTION: 3
プロジェクト憲章はどのプロジェクト管理プロセスグループで開発されていますか？
A. 開始中
B. 監視と制御
C. 実行中
D. 計画
Answer: A

NEW QUESTION: 4
At which OSI layer does SSL reside in?
A. Session
B. Transport
C. Application
D. Network
Answer: B
Explanation:
The following answers are incorrect: Application - SSL resides in the transport layer.
Session - While SSL does straddle both the session and transport layers, for exam purposes, choose transport.
Network - SSL resides in the transport layer.
The following reference(s) were/was used to create this question: All In One CISSP Exam guide by Shon Harris, Chapter 7, pg 493