1. Which of the following is(are) correct description of an American Option? It is only traded on...
Fantastic news! We've Found the answer you've been seeking!
Question:
- 1. Which of the following is(are) correct description of an American Option?
- It is only traded on the exchanges in the USA.
- It can be exercised anytime from the date of issue to the maturity date.
- It is always denominated in USD.
- a). I only
- b). II and III only
- c). II only
- d). I, II and III
- 2). The one-year spot rate is 4% and the two-year spot rate is 6%. What is the forward rate for the second year?
- a). 2.24%
- b). 5.39%
- c). 6.53%
- d). 8.04%
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
Posted Date: