FIN 534 FINAL EXAM/FIN534 Final Exam Questions and Answers

• Question 1 5 out of 5 point Which of the following variables does NOT affect the value of a stock option? Selected Answer: The predicted future price of the underlying stock Correct Answer: The predicted future price of the underlying stock • Question 2 5 out of 5 point the end of the y Selected Answer: What is the holding period return for the year on a bond with a par value of $1,000 and a coupon rate of 8.5% if its price at the beginning of the year was $1,215 and its price at ear was $1,020? Assume interest is paid annually. −9.05 % Correct Answer: −9.05 % • Questio n 3 5 out of 5 point The price of a ca ll option tends to be lower when which of the following is higher (all else equal)? Selected Answer: The strike price Correct Answer: The strike price