When you are long an option and you delta hedge, you want   A. traders talking a lot about other asset classes and ignore your underlying   B. volatility to increase and the underlying to move around a lot   C. the cost of carry to narrow   D. volatility to decrease and the underlying to just stop moving

There are two portfolios available: A: Get $4 for sure B: 70% gaining $10 and 30% losing $10. The expected value of A is $ The expected value of B is $ The standard deviation of A is $ The standard deviation of B is $ (enter all answers with two decimal places.) Amanda is risk neutral, she would choose portfolio О А. В. B. Not enough information to determine. C. A. O D. A or B.

1. Which of the following is INCORRECT? a All of a stock's risk could be unsystematic. b. A negative beta stock has an expected return less than the risk-free rate. c. Anticipated returns on any given stock are always greater than 0. d. Two assets with a correlation of -1 could be combined to create a portfolio with a standard deviation of zero (no risk). 2. Which of the following measures the total risk of a portfolio? a. Beta b. Standard Deviation c. Correlation Coefficient d. Alpha 3. Which of the following stocks have the highest systematic risk? a A stock with high correlation to the market and high returm volatility. b. A stock with low correlation to the market and a high return volatility. c A stock with high correlation to the market and a low return volatility. d. A stock with low correlation to the market and a low return volatility. 4. Which of the following companics have the lowest systematic risk? a A company that sells soups (Campbells), beta=0.60 b. A coffee company…

A call option is "in the money" when the A. market price of the security exceeds the exercise price.B. market price of the security equals the exercise price.C. market price of the security is less than the exercise price.D. premium on the option is less than the exercise price.