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 priceweighted 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 21 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 firstperiod rates of return (from t=0 to t=1) on A) a marketvalueweighted index. B) an equallyweighted index. C) a geometric index. 1...
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This note was uploaded on 01/26/2009 for the course FBE 441 taught by Professor Callahan during the Fall '07 term at USC.
 Fall '07
 Callahan

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