The standard deviation of the change in value of a position in a stock per day is $20,000. What is the 9-day 97.5% VaR?

A.$139,800

B.$117,600

C.$180,000

D.$352,800

Which of the following is true? When the risk-free rate increases,

A.the value of a call option increases, whereas the value of a put option decreases.

B.the values of both calls and puts increase.

C.the values of both calls and puts decrease.

D.the values of American calls and puts increase, but the relationship between the risk-free rate and the prices of European options is uncertain.

Consider an exchanged-traded call option contract to buy 1,000 shares with a strike price of $30 and maturity in 3 months. What is the new exercise price when there is a 5% cash dividend?

A.$31.5

B.$50

C.$30

D.$28.57