1 mr smartrsquos utility curve is shaped such that for an, Ask an Expert

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1. Mr. Smart’s utility curve is shaped such that for an equal dollar gain or loss, his happiness lost exceeds his happiness gained. How can we describe Mr. Smart?

a. As risk losing b. As risk diversifying c. As risk neutral d. As risk averse e. As risk loving

2. A call option on IBM with an exercise price of? $90 will expire in 30 days. IBM stock is currentlt selling for? $93 per share. The volatility of IBM stock is? 62%. The risk free rate is? 5%. The? Black-Scoles formula will value this IBM call? at____?

A. ?$3.00

B. ?$8.29

C. ?$0.0

D. ?$4.81

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92772488

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