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WIFOCACIU PLUJwww. the payoff on a 15-year European-style call option on 500,000 Euro with an exercise price of $750,000. the 0.5% per annum interest earned

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WIFOCACIU PLUJwww. the payoff on a 15-year European-style call option on 500,000 Euro with an exercise price of $750,000. the 0.5% per annum interest earned on the default-free Australian dollar-denominated bonds. Question 4 2 pts You buy a European put option with the following parameters: m = -0.4, S = $25, p = $8, r = 2% p.a., mu = 12% p.a. Both r and mu are continuously compounded. What is the instantaneous continuously-compounded expected return on your put position? 0 -13% p.a. +13% p.a. -10.5% p.a. O +2% p.a. +10.5% p.a. Question 5 3 pts The continuously compounded interest rate on a 15-year default-free Australian dollar- denominated bonds is 0.5% per annum. The continuously compounded interest rate on 15-year 25 sty W MacBook Pro G Search or type URL $ % A ) A t & 7 3 5 * 0 6 9 O E R T Y U O WIFOCACIU PLUJwww. the payoff on a 15-year European-style call option on 500,000 Euro with an exercise price of $750,000. the 0.5% per annum interest earned on the default-free Australian dollar-denominated bonds. Question 4 2 pts You buy a European put option with the following parameters: m = -0.4, S = $25, p = $8, r = 2% p.a., mu = 12% p.a. Both r and mu are continuously compounded. What is the instantaneous continuously-compounded expected return on your put position? 0 -13% p.a. +13% p.a. -10.5% p.a. O +2% p.a. +10.5% p.a. Question 5 3 pts The continuously compounded interest rate on a 15-year default-free Australian dollar- denominated bonds is 0.5% per annum. The continuously compounded interest rate on 15-year 25 sty W MacBook Pro G Search or type URL $ % A ) A t & 7 3 5 * 0 6 9 O E R T Y U O

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