The Mathematics of Money

282 Chapter 6 Investments The Options Market There is really no theoretical reason why an option could not be written for any nu ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Corp. at 60, and the market price was $75. We said there that you could exerci ...

284 Chapter 6 Investments possibilities are nearly unlimited. These more exotic possibilities fall far outside the scope of this ...

Copyright © 2008, The McGraw-Hill Companies, Inc. a. Howard is long cotton futures. b. Jill is short cocoa. Seramsis Corp. is l ...

286 Chapter 6 Investments Scott took a short position for 500 ounces of July gold at $653.25 per ounce. He did not close the po ...

Copyright © 2008, The McGraw-Hill Companies, Inc. D. Calculating Profi ts/Losses from Options Trades Gustavo bought 12 call opt ...

288 Chapter 6 Investments d. What is the minimum level for this index at which you can exercise your options without losing mone ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 1.4 Time Value of Money 289 Debbie took a position short 10,000 ounces of Aug ...

290 Chapter 6 Investments steal all of Zarofire’s customers, that the company would not be crippled by unexpected product failur ...

Copyright © 2008, The McGraw-Hill Companies, Inc. The following table compares $10,000 invested in each of the four stocks (500 ...

292 Chapter 6 Investments $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 Value Time $2,500 Each Portfolio Portfolio An investmen ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Investment professionals often speak of asset classes, a term for general cate ...

294 Chapter 6 Investments want to allocate all of his money to equities. But that rate of return does not come with a guarantee; ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Mutual Funds Even though there are plenty of good reasons to diversify, creati ...

296 Chapter 6 Investments When funds are withdrawn, the investor receives the value of the withdrawn shares, calculated at the t ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Measuring Fund Performance Determining the rate of return from a mutual fund i ...

298 Chapter 6 Investments A. Portfolio Diversifi cation Exercises 1 to 6 are based on the table below, showing the prices of the ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Four of the lines in the graph below show the value of $5,000 invested in eac ...

300 Chapter 6 Investments The Hopewell Asian Markets Telecommunications Fund is a closed-end fund. There are 2,814,000 shares o ...

Suppose that 20 years ago you invested $12,000 in a 5% load mutual fund with a $78.35 net asset value. All distributions have b ...