Question
QUESTION 2 (25 MARKS) (a) Discuss any FOUR (4) benefits of Stock Index Futures (SIF) Contracts. (12 marks) (b) Calculate the fair value of a
QUESTION 2 (25 MARKS)
(a) Discuss any FOUR (4) benefits of Stock Index Futures (SIF) Contracts. (12 marks)
(b) Calculate the fair value of a call option using Black-Scholes Option Pricing Model with the following information: (13 marks)
Stock price = RM 18.00
Exercise price = RM 16.00
Interest rate = 10 %
Maturity = 90 days
Standard Deviation = 20 %
Dividends = 0
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
