A portfolio with a 20% standard deviation generated a return of 15% last year when T-bills were paying 4.5%. This portfolio had a Sharpe measure of ____.

Multiple Choice

• 0.22

• 0.25

• 0.42

• 0.53

Suppose the price of a share of IBM stock is $200. An April call option on IBM stock has a premium of $5 and an exercise price of $200. Ignoring commissions, the holder of the call option will earn a profit if the price of the share

Multiple Choice

• increases to $204.

• decreases to $190.

• increases to $206.