Question: answer both correctly for an upvote You are given the daily closing prices of a stock: Date Stock price Feb 1 63 Feb 2 64

 answer both correctly for an upvote You are given the daily
closing prices of a stock: Date Stock price Feb 1 63 Feb
answer both correctly for an upvote

You are given the daily closing prices of a stock: Date Stock price Feb 1 63 Feb 2 64 Feb 3 66 Feb 4 66 Feb 5 65 Feb 6 66 On Jan 31, Jill purchased the following options expiring on Feb 6: 1. 63-strike European put option II. 63-strike American put option III. 63-strike arithmetic average price Asian put option. The payoffs of these options are determined using daily closing prices. Which of the following is TRUE? Possible Answers 1 has the smallest payoff. BII has the largest payoff. III has a positive payoff DIII has a negative payoff. E I. II and III have the same payoff A stock has a time-t price of S(t). You are given the following values of S(t) 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2 s(0) 100 107 102 96 94 110 115 120 108 Consider Asian options that are based on quarterly stock prices over 2 years and matures two years from now. Calculate the payoff of a geometric average strike call. Possible Answers -1.82804 B -0.3208 0 D 0.3208 E 1.82804 You are given the daily closing prices of a stock: Date Stock price Feb 1 63 Feb 2 64 Feb 3 66 Feb 4 66 Feb 5 65 Feb 6 66 On Jan 31, Jill purchased the following options expiring on Feb 6: 1. 63-strike European put option II. 63-strike American put option III. 63-strike arithmetic average price Asian put option. The payoffs of these options are determined using daily closing prices. Which of the following is TRUE? Possible Answers 1 has the smallest payoff. BII has the largest payoff. III has a positive payoff DIII has a negative payoff. E I. II and III have the same payoff A stock has a time-t price of S(t). You are given the following values of S(t) 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2 s(0) 100 107 102 96 94 110 115 120 108 Consider Asian options that are based on quarterly stock prices over 2 years and matures two years from now. Calculate the payoff of a geometric average strike call. Possible Answers -1.82804 B -0.3208 0 D 0.3208 E 1.82804

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