Question: Increased because gamma has increased. Decreased because delta has increased. Increased because delta has decreased. Question 4 (1 point) The current spot rate between the
Increased because gamma has increased. Decreased because delta has increased. Increased because delta has decreased. Question 4 (1 point) The current spot rate between the Japanese Yen and the U.S. dollar is Y124.56/$. If the risk free rate in Japan is 2.6% and in the U.S. its 6.4%, what should the 6-month forward rate be? OY122.27/$ Y126.45/$ OY120.11/$ OY120.46/$ Question 5 (1 point) Consider a two-period binomial model in which the underlying stock is currently trading at $30 and can go up 14 per cent or down 11 per cent each period. The risk free rate is 3 per cent per period. Each period is one year. What is the probability of an un moyement
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