Question: 1. TRUE or FALSE (if false, please indicate why the statement is false in the space below the statement. _The standard deviation of stock return

1. TRUE or FALSE (if false, please indicate why the statement is false in the space below the statement. _The standard deviation of stock return in a short period of time At equals to the stock volatility multiplied by the time length 41. In Black-Scholes model, N(x) denote the area under a normal distribution up to x. VIX index measures historical volatilities for options trading on the S&P 500 index

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

1. TRUE or FALSE (if false, please indicate why the statement is false in the space below the statement. A stock provides an expected return of 10% per year and has a volatility of 20% per year. The...

1. TRUE or FALSE (if false, please indicate why the statement is false in the space below the statement. In a binomial tree created to value an option on a stock, the expected return on stock is the...

1. TRUE or FALSE (if false, please indicate why the statement is false in the space below). _______The margin account administered by the clearing house is marked to market daily, and the clearing...

for options amd futures class _An American option cannot be worth less than a European option, if they have the same underlying asset, maturity, and strike price. _The higher the strike price of a...

TRUE or FALSE (if false, please indicate why the statement is false in the space below the statement.?????? A U.S. company will pay 5 million for imports from Britain in 3 months. They may hedge the...

excs and hep 1. Antarctica uses a system of fixed exchange rates, its current account deficit is usd 6 billion, and its capital account balance is usd 4 billion. Based on this information, answer the...

(a) Suppose that the economic is hit by a pandemic (e.g. Covid-19). The government responds to the pandemic by raising the public health spending per person (e.g spending on vaccination) temporarily...

The stock of Foundations of Finance Inc. trades at $40 a share. Its end-of-year price and dividend will depend on the state of the economy by the end of the year as follows: Stock price $50 Dividend...

Multiple Choice Questions: (20 points) Choose the correct answer from the following choices. Make your selection clear and distinct, otherwise you will not get credit. 1.Asset A has an expected...

i'm need so major help with a finance assignment which is due in 6 hours. Can someone help me? please see attachment. BFIN3321 FINAL EXAM FALL I 2016 MULTIPLE CHOICE 1. The volatility of an...

The U.S. Center for Disease Control reports that the mean life expectancy was 47.6 years for whites born in 1900 and 33.0 years for nonwhites. Suppose that you randomly survey death records for...

For a direct-mapped cache, a main memory address is viewed as consisting of three fields. List and define the three fields.

All of the following statements with respect to a partner s sale or exchange of a partnership s interest are true, except A . The sale or exchange of a partner s interest in a partnership usually...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...