博迪_投资学第九版_英文答案

It follows that EWIs are not good reflectors of the broad market

which they represent; EWIs underplay the economic importance of

larger companies;

Turnover rates will tend to be higher, as an EWI must be rebalanced

back to its original target. By design, many of the transactions

would be among the smaller, less-liquid stocks.

16. a.

b.

c.

17. The higher coupon bond. The call with the lower exercise price. The put on the lower priced stock. a.

You bought the contract when the futures price was $3.835 (see Figure 2.10). The contract closes at a price of $3.875, which is $0.04 more than the

original futures price. The contract multiplier is 5000. Therefore, the gain

will be: $0.04 × 5000 = $200.00

Open interest is 177,561 contracts.

Since the stock price exceeds the exercise price, you exercise the call.

The payoff on the option will be: $21.75 $21 = $0.75

The cost was originally $0.64, so the profit is: $0.75 $0.64 = $0.11 b. 18. a.

b.

c. If the call has an exercise price of $22, you would not exercise for any stock price of $22 or less. The loss on the call would be the initial cost: $0.30 Since the stock price is less than the exercise price, you will exercise the put.

The payoff on the option will be: $22 $21.75 = $0.25

The option originally cost $1.63 so the profit is: $0.25 $1.63 = $1.38

19.

There is always a possibility that the option will be in-the-money at some time prior to expiration. Investors will pay something for this possibility of a positive payoff.