7. You buy a 90-day call option having an exercise price (E) of US$40. On the date of maturity, the market price (P) of the underlying stock is US$45. What is your payoff if you exercised the options contract?

a.

(US$5)

b.

US$10

c.

US$5

d.

(US$10)

7b. Identify the measure which best fits the description.

The actual data are compared with the expected values. ANSWER

The expected data are generated by taking the average of past data in its estimation. ANSWER

It is based on retroactive data. ANSWER

Ex post factor

Standard deviation

Probability

Ex ante