Unformatted text preview: C) sell the option in the open market prior to expiration. D) B and C. E) A and C. 4.Based on the information given, for a price-weighted index of the three stocks calculate: A) the rate of return for the first period (t=0 to t=1). B) the value of the divisor in the second period (t=2). Assume that Stock A had a 2-1 split during this period. C) the rate of return for the second period (t=1 to t=2). 5. Based on the information given for the three stocks, calculate the first-period rates of return (from t=0 to t=1) on A) a market-value-weighted index. B) an equally-weighted index. C) a geometric index. 1...
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- Fall '07
- Derivative, underlying asset, New York Stock Exchange Index