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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 $80 and pays no dividend. The historical standard deviation of the asset is 15% and the expected return on the asset is 8%. At the 95% confidence level, what is the price of a put option that insures the asset over the next year?
A) $2.56
B) $1.25
C) $0.86
D) $0.15
Textbook 
Choosing Health

Choosing Health


Edition: 2nd
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RaecocoRaecoco
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6 years ago
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Villesa Author
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#2
5 years ago
Easier than I though
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