Find what products the CBOE trades.
The Chicago Board Options Exchange (CBOE) offers trading of these products:
VIX Index & Volatility
SPX & Stock Index Options
Options on Single Stocks, ETFs & ETNs
Mini Options
Weeklys Options
End-of-Month & Quarterly Op
Problem 2.6
A default-free zero-coupon bond costs $91 and will pay $100 at maturity in 1 year. What is the
effective annual interest rate? What is the payoff diagram for the bond? The profit diagram?
EAR: 9.89%
Problem 2.13
Suppose the stock price is $40
Problem 9.3
Suppose the S&R index is 800, the continuously compounded risk-free rate is 5%, and the
dividend yield is 0%. A 1-year 815-strike European call costs $75 and a 1-year 815-strike
European put costs $45. Consider the strategy of buying the stock
Problem 6.14
The current price of oil is $32.00 per barrel. Forward prices for 3, 6, 9, and 12 months are
$31.37, $30.75, $30.14, and $29.54, respectively. Assuming a 2% continuously compounded
annual risk-free rate, what is the annualized lease rate for
* Assume the interest rates are per anum
Problem 5.5
Suppose you are a market-maker in S&R index forward contracts. The S&R index spot price is
1100, the risk-free rate is 5%, and the dividend yield on the index is 0.
a. What is the no-arbitrage forward p
Consider two portfolios:
Portfolio A: A forward contract to buy one share of the underlying stock at the forward
price of $1030 at the end of 1 year.
Portfolio B: The stock whose current market price is $1,000 and a short position of debt
instrument that