What is the payoff of a long 
http://blackboard.qut.edu.au/webapps/assessment/take/launch.jsp?course_assessment_id=_96093_1&course_id=_110605_1&content_id=_5174822_1&step=nullcall option with an exercise price of $15.50, if the underlying share price is $16.50, at the expiry date of the option? The option was purchased for $1.20.(1)
a.
$1.50
b.
$15.00
c.
$1.00
d.
30 cents
e.
$16.5
f.
Zero
Given the following 
http://blackboard.qut.edu.au/webapps/assessment/take/take.jsp?course_assessment_id=_96093_1&course_id=_110605_1&content_id=_5174822_1&question_num_2.x=0&toggle_state=qShow&step=nulldata on a European Call calculate the value of a European 
http://blackboard.qut.edu.au/webapps/assessment/take/take.jsp?course_assessment_id=_96093_1&course_id=_110605_1&content_id=_5174822_1&question_num_2.x=0&toggle_state=qShow&step=nullPut option (correct to two decimal places) with the same exercise price and maturity as the Call: (2)
c = 4.15
Rf = 0.05 continuous pa
T = six months
X = 17
S = 18
In Australia the SPI future has a value of $25 per point of the index. If you go short the SPI at 4500 and the price closes for the day at 4510 then your account balance would (0.5)
a.
decrease by $25
b.
increase by $25
c.
increase by $250
d.
not change because marking to market only occurs when you close out
e.
decrease by $250
A currency forward contract is a contract that set the exchange rate in advance. It is usually written between a firm and a bank and it fixes the 
http://blackboard.qut.edu.au/webapps/assessment/take/take.jsp?course_assessment_id=_96093_1&course_id=_110605_1&content_id=_5174822_1&question_num_10.x=0&toggle_state=qShow&step=nullcurrency exchange rate for a transaction that will occur at a future date.
In Australia most hedging of 
http://blackboard.qut.edu.au/webapps/assessment/take/take.jsp?course_assessment_id=_96093_1&course_id=_110605_1&content_id=_5174822_1&question_num_10.x=0&toggle_state=qShow&step=nullexchange risk is…