Test Bank for
Derivatives: Principles & Practice
Chapter 8. Options: Payoffs & Trading Strategies
Rangarajan K. Sundaram
Sanjiv R. Das
August 1, 2010
1. In a covered call strategy:
(a) The gross payoff is greater than the net payoff.
(b) The gross payoff

SAMPLE SIZE
n
=
40 n X - (X)
X
n =5
X =243
X=11815
X
C1:48
C2:49
C3:50
C4:47
C5:49
X = 243
Tim Study Form
X
2304
2401
2500
2209
2401
X= 11815
1
n
=
40 ( n ) ( X ) - ( X )
X
n
=
40 ( 5 ) ( 11815 ) - ( 243 )
243
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=
40 ( 59075 ) - (59049 )
( 243
)
n
=
40

Notice F64415B Guidance Notes for the Trading Clearing and Settlement and Custody of BEE Securities Listed Under the BEE
Verification Model
Guidance Notes for the
Trading, Clearing & Settlement
and custody of BEE Securities
listed under the BEE
Verificati

Transactions in BEE
Equity Securities
(Lecture 1 Part 5)
SAIS LECTURE TO UJ
Lecture 1 Part 5
16 February 2016
2006 COPYRIGHT SUBSISTS IN THIS
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PRACTICAL EQUITY OFFBOOK TRADING ON THE
JSE
(Lecture 1 Part 4)
SAIS LECTURE TO UJ
Lecture 1 Part 4
16 February 2016
2006 COPYRIGHT SUBSISTS IN THIS
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INTRODUCTION TO
TRADING AND
THE FINANCIAL
MARKETS ACT, 2012
a
Lecture 1 Part 1
a
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16 February
2016
TRADING
Sections 24 (a) & (b) of the Financial
Markets Act, 2012 (Act No.19 of 2012)
(FMA) are the sections most directly
related to what

EQUITY TRADING RULES
& DIRECTIVES
(Lecture 1 Part 3)
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Lecture 1 Part 3
16 February 2016
2006 COPYRIGHT SUBSISTS IN THIS
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EQUITY TRADING RULES
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Lecture 1 Part 2
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Department of Finance and
Investment Management
DEPARTMENTAL STYLE
AND REFERENCE GUIDE
A comprehensive guide to academic writing style
and the Harvard Method of referencing
Version 9.3 2016
Prepared and revised by
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DEPARTMENTAL STYLE & REFE

Test Bank for
Derivatives: Principles & Practice
Chapter 10: Early-Exercise & Put-Call Parity
Rangarajan K. Sundaram
Sanjiv R. Das
August 1, 2010
1. An American call option on a stock that pays no dividends:
(a) May be exercised early if the stock rises s

Test Bank for
Derivatives: Principles & Practice
Chapter 7: Options Markets
Rangarajan K. Sundaram
Sanjiv R. Das
August 1, 2010
1. The largest markets for derivatives based on notional outstandings are
(a) Equity derivatives.
(b) Interest-rate derivatives

Test Bank for
Derivatives: Principles & Practice
Chapter 4: Pricing Forwards & Futures II
Rangarajan K. Sundaram
Sanjiv R. Das
August 1, 2010
1. Forward pricing by replication depends on the following assumption:
(a) That the nominal interest rate for the

Test Bank for
Derivatives: Principles & Practice
Chapter 11. Option Pricing: An Introduction
Rangarajan K. Sundaram
Sanjiv R. Das
August 1, 2010
1. In a one-period binomial model, assume that the current stock price is $100, and that it
will rise to $110

Test Bank for
Derivatives: Principles & Practice
Chapter 9. No-Arbitrage Restrictions
Rangarajan K. Sundaram
Sanjiv R. Das
August 1, 2010
1. An arbitrage opportunity is any situation in which
(a) Your estimated probability of a stock appreciating in price

Test Bank for
Derivatives: Principles & Practice
Chapter 6: Interest-Rate Forwards & Futures
Rangarajan K. Sundaram
Sanjiv R. Das
August 1, 2010
1. Eurodollar deposits are
(a) Deposits that may be made in euros or dollars.
(b) Euro denominated deposits th

Test Bank for
Derivatives: Principles & Practice
Chapter 13. Implementing the Binomial Model
Rangarajan K. Sundaram
Sanjiv R. Das
August 1, 2010
1. If x is normally distributed with mean and variance 2 , then y = ex is
(a) Normally distributed.
(b) Lognor