Linear regression!!!!!

Q1 A non-profit paying stock is right now exchanging at $40. The half year call choice has a strike cost of $38. On the off chance that the stock has a standard deviation of 0.15 and the constant danger free rate is 4%, what is the Black-Scholes delta of this choice?

0.61

0.77

0.86

0.43

Question 2

A non-profit paying stock is as of now esteemed at $100. The alternative strike cost is $100, the danger free rate is 2%, and the stock unpredictability is 30%. In the event that there are 2 binomial periods, what is the measure of getting (B) needed to imitate the call alternative position?

- 50.1233

- 47.8412

- 46.3639

- 45.8987

Question 3

A stock sells for $61.25. The half year call alternative cost on the stock is equivalent to the half year put choice cost and their strike cost is $60. Accepting the nonstop danger free rate is 5%, what is the profit rate on the stock?

5.21%

12.63%

7.44%

9.12%

Question 4

What is the current spot cost of gold if the rent rate on the agreement is 1.25%, the danger free rate is 3%, and the 9-month forward cost is $1,000?

$986.96

$1,052.54

$964.37

$1,080.92

Question 5

A non-profit paying stock is at present esteemed at $100. The choice strike cost is $100, the danger free rate is 2%, and the stock unpredictability is 30%. Utilizing 2 binomial periods, what is the 1-year call alternative cost?

$10.47

$9.23

$12.89

$11.94

Question 6

Assume we need to develop a term coordinated with arrangement of two bonds. We have a long situation in a 10-year, 6.5% yearly coupon security that yields 5.5% and has a length of 7.9366 years. For each agreement we are long, what number of agreements do we need to short if the other security is a 18-year, 4.75% yearly coupon security that yields 10% and has a span of 10.5104 years? (Clue: You should figure each bond value first)

- 0.74

- 0.81

- 1.67

- 1.49

Question 7

Assume Samsung produces 800 telephones and each requires 2 oz. of silver to create. The standard deviation of the telephone cost is 0.15 and the standard deviation of the silver cost is 0.55. The relationship among's silver and the telephone cost is 0.65. One silver agreement calls for conveyance of 25 oz. of platinum. What number of agreements are expected to limit the change of benefit? Round to the closest entire number.

41

23

35

58

Question 8

A non-profit paying stock is at present esteemed at $100. The alternative strike cost is $100, the danger free rate is 2%, and the stock unpredictability is 30%. On the off chance that there are 2 binomial periods, what is the delta of a 1-year call choice at time 0 (today)?

0.5784

- 0.6596

0.3878

- 0.4563

Question 9

A non-profit paying stock is as of now exchanging for $100 and has a standard deviation of 0.10. The strike cost on the 2-year call alternative is $120 and the persistent danger free rate is 5%. What amount getting (B) is required with the acquisition of delta shares accepting 1 binomial advance?

- 42.71

42.71

- 29.10

29.10

Question 10

Consider a 5-year zero-coupon security with a 5% respect development. The bond cost per $1,000 of presumptive worth is $862.61. What is the changed term of this bond?

4 years

4.85 years

5 years

4.76 years

Question 11

A non-profit paying stock is presently exchanging at $50. Over the course of the following year, its stock cost can increment by 30% or decline 20%. What is the benefit of loaning sum (B) with strike value equivalent to $60 if the nonstop danger free rate is 2% and expecting 1 binomial advance?

- 50.97

42.38

50.97

- 42.38

Question 12

A non-profit paying stock is right now exchanging at $40. The half year call alternative has a strike cost of $38. On the off chance that the stock has a standard deviation of 0.15 and the ceaseless danger free rate is 4%, what is the flexibility of the call choice?

6.33

9.17

12.65

5.90

Question 13

The cost of a 3-year zero coupon government bond is 85.16. The cost of a comparable 4-year bond is 79.81. What is the respect development (compelling yearly yield) on the 4-year security?

4.6%

5.5%

5.8%

6.7%

Question 14

Consider a bond that makes semiannual coupon installments. The security is a 8% coupon with 6 years to development, a cost of $95.44 per $100 of assumed worth, and yield of 9%. What is the change factor of this bond?

1.0436

1.0995

1.0691

1.0801

Question 15

In the event that a stock cost increments from $63 to $65 and the cost of a call alternative with a delta of 0.60 (gamma of 0.05) is $4.30 (at $63), at that point what is the rough cost of the call choice after the stock cost increment utilizing just a delta estimate?

$4.90

$3.70

$5.50

$5.90

Question 16

A long situation in a T-note contract is a commitment to purchase a 6% bond with somewhere in the range of 6.5 and 10 years to development.

Valid

Bogus

Question 17

A non-profit paying stock as of now sells for $125.00. A year call choice with a strike of $130.00 has a premium of $4.00. Accepting a 5% constantly accumulated danger free rate, what is the cost of the related put alternative?

$2.66

$3.17

$1.04

$3.53

Question 18

A non-profit paying stock is as of now exchanging at $50. Over the course of the following year, its stock cost can increment by 30% or decline 20%. What is the delta of a put alternative on this stock with strike value equivalent to $60 if the constant danger free rate is 2% and accepting 1 binomial advance?

0.50

- 0.80

- 0.50

- 0.65

Question 19

What is the current spot cost of gold if the rent rate on the agreement is 2.25%, the danger free rate is 4.5%, and the 1-year forward cost is $950?

$1,014.63

$928.86

$1,052.54

$880.92

Question 20

The Black-Scholes choice cost is the binomial choice cost as the quantity of binomial advances approaches endlessness for a given fixed chance to lapse.

Valid

Bogus

Question 21

Which of the accompanying assertions is bogus?

American alternatives are at any rate as significant as European choices.

All else equivalent, a 2-year American call choice is at any rate as important as a 1-year American call alternative.

A call with a lower strike cost is in any event as significant as a call with a higher strike cost.

A put with a lower strike cost is in any event as important as a put with a higher strike cost.

Question 22

A non-profit paying stock is right now exchanging at $50. Over the course of the following year, its stock cost can increment by 30% or decline 20%. What is the worth of a put alternative on this stock with strike value equivalent to $60 if the persistent danger free rate is 2% and expecting 1 binomial advance?

$8.41

$12.33

$10.97

$9.07

Question 23

On the off chance that a stock cost increments from $63 to $63.80 and the cost of a call alternative with a delta of 0.50 (gamma of 0.04) is $2.30 (at $63), at that point what is the estimated cost of the call choice after the stock cost increment utilizing a delta-gamma guess?

$2.71

$3.70

$1.96

$2.25

Question 24

The S&P 500 Index is evaluated at $1800. The annualized profit yield on the file is 2.40%. The consistently accumulated yearly danger free loan fee is 4.40%. What is the cost of a forward agreement that lapses 9 months from today?

$1,937.48

$1,942.66

$1,827.20

$1,801.69

Question 25

A non-profit paying stock is right now exchanging at $40. The half year call alternative has a strike cost of $38. In the event that the stock has a standard deviation of 0.15 and the nonstop danger free rate is 4%, what is the Black-Scholes call choice cost?

$2.71

$5.46

$4.68

$3.36

Question 26

A non-profit paying stock is right now exchanging for $100 and has a standard deviation of 0.10. The strike cost on the 2-year call alternative is $120 and the constant danger free rate is 5%. What is the value today of the 2-year call alternative accepting 1 binomial advance?

$3.06

$3.96

$6.14

$5.60

Question 27

The 1-year and 2-year forward costs for platinum are $900/oz and $920/oz, individually. A firm as of late bought a little platinum dig for $1,200 and they anticipate that the mine should deliver 1 ounce of platinum every year for a very long time. The minimal expense of working the mine is $75/oz. On the off chance that the danger free rate is 5%, what is the net present worth of this mine?

$349.35

$1,549.35

$502.17

$749.35

Question 28

The costs of 1, 2, 3, and 4-year zero coupon government bonds are 95.42, 90.36, 85.16, and 78.81, individually. What is the standard coupon on a 3-year coupon bond selling at standard?

5.02%

5.48%

5.81%

6.06%

Question 29

Allowed a 12-year, zero-coupon security with an assumed worth of $100, what is the security's Macaulay length if the respect development is 6.5%?

9

12

10

11

Question 30

Consider a 5-year zero-coupon security with a 3% respect development. The bond cost per $1,000 of assumed worth is $862.61. What is the value worth of a premise point for this bond?

- $0.1943

- $0.4187

- $0.2765

- $0.3433

Part B.

Question 1: Flood Insurance is accessible through the entirety of the accompanying, EXCEPT:

The government straightforwardly

Private guarantors

The state government

The writ own program

Question 2: Section I of the Homeowners Policy covers:

Individual risk and clinical installments

Strengthening installments including safeguard costs

Staying and individual property of the protected

Harm to property of others brought about by the guaranteed

Question 3: HO and Dwelling strategy charges should incorporate cash to pay all, EXCEPT:

Some statistics students estimated that the amount of change daytime statistics students carry is exponentially distributed with a mean of so.72. Suppose that we randomly pick 25 daytime statistics students. Part () part (b) Give the distribution of X. X-Of part (c) part (d) Give the distribution of & (Round your standard deviation to three decimal places.) part (t) Find the probability that an individual had between $0.80 and $1.00. (Found your answer to four decimal places.) Graph the situation, and shade in the area to be determined. 14 Lot 05 20 part (0) Find the probability that the average of the 25 students was between $0.80 and $1.00. [Round your answer to four decimal places.) Graph the situation, and shade in the area to be determined.Samples of a cast aluminum part are classified on the basis of surface finish (in microinches) and length measurements. The results of 100 parts are summarized as follows: Length excellent good Surface excellent 80 2 Finish good 10 8 Let A denote the event that a randomly selected part has excellent surface finish, and let B denote the event that a randomly selected part has excellent length. Determine: a. P(A) and P(B). b. If the selected part has excellent surface finish, what is the probability that the length is excellent? c. If the selected part has good length, what is the probability that the surface finish is excellent?6. Suppose that the probability of being tutored in Statistics is 0.55, while the probability of being tutored in Physics is 0.32, and the probability of being tutored in both Statistics and Physics is 0.09. a) What is the probability of being tutored in Statistics or Physics? b) What is the probability of not being tutored in Statistics nor Physics? c) Are the events "being tutored in Statistics" and "being tutored in Physics" mutually exclusive? Explain.How are your grades? In a recent semester at a local university, 3oo students a: enrolled in both Statistics I and Psychology 1. Of these students, as got an A 4') in statistics, is: got an a in psychology, and 44 got an A in both statistics and E: psychology. Round the answers to four decimal places, as needed. Q E1 d]: (a) Find the probability that a randomly chosen student got an A in E statistics or psychology or both. The probability that a randomly chosen student got an A in statistics or psychology or both is D. ms at: (b) Find the probability that a randomly chosen student did not get an A in statistics. The probability that a randomly chosen student did not get an A In statistics is D