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You have been asked to estimate the VaR ...

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题目

You have been asked to estimate the VaR of an investment in Big Pharma Inc. The company’s stock is trading at USD 23 and the stock has a daily volatility of 1.5%. Using the delta-normal method, the VaR at the 95% confidence level of a long position in an at-the-money put on this stock with a delta of -0.5 over a 1-day holding period is closest to which of the following choices?

选项

A.USD 0.28

B.USD 0.40

C.USD 0.57

D.USD 2.84

答案

A

解析

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