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Home Q & A Board Science-Related Homework Help Health, Nutrition, and Food Sciences
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Villesa Villesa
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6 years ago
Use VaR techniques to determine the cost of insurance on a risky investment. The investment asset has a value of $150 and pays no dividend. The historical standard deviation of the asset is 20% and the expected return on the asset is 15%. At the 95% confidence level, what is the price of a put option that insures the asset over the next 6 months?
A) $0.33
B) $1.25
C) $2.65
D) $6.56
Textbook 
Choosing Health

Choosing Health


Edition: 2nd
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rtwingfieldrtwingfield
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6 years ago
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Villesa Author
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6 years ago
Good timing, thanks!
Lourd Jenkins
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Yesterday
You make an excellent tutor!
jasonbourne
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2 hours ago
This site is awesome
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