q44

q46

You are convinced that a stock's price will move by at least 15% over the next 3 months. You are not sure which way the price will move, but you believe that the results of a patent hearing are definitely going to have a major effect on the stock price. You are somewhat more bearish than bullis however. Which one of the following options strategies best fits this scenario? write a straddle. buy a straddle buy a strap buy a strip According to the CAPM, what is the expected market return given an expected return on a security of 12.5%, a stock beta of 0.9, and a risk-free interest rate of 5%? 16.25% 13.33% 8.33% 15.0%