uppose that the simple annual returns on an investment over a 3-year period are: 8%, 2%, and 12%. What is the closest to the annualised holding period return? (a) 22.0% (b) 7.25% (c) 7.33% (d) 23.4% 7. A stock is currently trading at 20. Assume that at the end of one month it will either be 23 or 17. The risk-free interest rate is 5% per annum. The value of an ATM put option with a maturity

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