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q1 q2 The payoffs for financial derivatives are linked to a. securities that will be issued in the future b. the volatility of interest rates

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q1 q2

The payoffs for financial derivatives are linked to a. securities that will be issued in the future b. the volatility of interest rates c. Previously Issued Securities d. government regulations specifying allowable rates of return QUESTION 2 You have purchased a call option of a common stock for $5 per contract. The option has an exercise price of $100. What is your net profit on this option if stock price is $109 at expiration? a. 5 b. 3 c. 4 d. 6

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