quiz 1

quiz 1 - what is the NPV of the investment? Answer to #1:

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UGBA103-F08 Monday, 8-Sep-2008 Quiz I: Time Value of Money and Securities UGBA 103 1. The one period (year) discount factor is 0.8. What is the associated discount rate? 2. You possess a stock and want to protect yourself against downside risk. Do you buy a put or a call option? 3. You can invest $200 today in a riskless project that will pay you $210 in one year. If the risk free rate is 3.5%,
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Unformatted text preview: what is the NPV of the investment? Answer to #1: ____________________ Answer to #2: ____________________ Name: ________________ SID # : ________________ Section Number _________ Answer to #3: ____________________...
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