Question: Use the live BlackScholes program at www.mhhe.com/bma to estimate how much you should be prepared to pay to insure the value of your pension fund

Use the “live” Black–Scholes program at www.mhhe.com/bma to estimate how much you should be prepared to pay to insure the value of your pension fund portfolio for the coming year. Make reasonable assumptions about the volatility of the market and use current interest rates. Remember to subtract the present value of likely dividend payments from the current level of the market index.

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