hw0799
05-06-2007, 07:36 PM
2006, q7
Rf should use semin-annual, so Rf=5.063% from continous flat risk free rate 5%, isn't it?
Jam's practice problem, q3
it should buy security L (call, strike at 1600, index level 1500) instead of F(call, strike at 1600, index level 1400) , because the time they buy the security, the index level is 1500. Isn't it ? Thanks.
2006, q10, B:
"bonds are bought at a premium or discount", dose it imply : bonds are bought at a premium refer to a PAC with premium coupon
bought at discount refer to a PAC with discount coupon? Thanks. :judge:
Rf should use semin-annual, so Rf=5.063% from continous flat risk free rate 5%, isn't it?
Jam's practice problem, q3
it should buy security L (call, strike at 1600, index level 1500) instead of F(call, strike at 1600, index level 1400) , because the time they buy the security, the index level is 1500. Isn't it ? Thanks.
2006, q10, B:
"bonds are bought at a premium or discount", dose it imply : bonds are bought at a premium refer to a PAC with premium coupon
bought at discount refer to a PAC with discount coupon? Thanks. :judge: