Stock 2 is worth 7000 and has a beta of 11 stock 3 is worth


1. The spot exchange rate for the Mexican Peso is MXN 17.9921/USD. A Mexican Peso call option with 5 months until maturity and a strike price of $0.0535/MXN is selling a premium of $0.002970/MXN. What is the time value of the option?

A. $0.002080

B. $0.000890

C. $0.000350

D. $0.019103

2. You have an investment that consists of 3 stocks. Stock 1 is worth $20,000 with a beta of 0.95.

Stock 2 is worth $7,000 and has a beta of 1.1. Stock 3 is worth $15,000 and has a beta of 1.4.  

What is the portfolio beta?

1.015

0.996

1.136

1.203

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Financial Management: Stock 2 is worth 7000 and has a beta of 11 stock 3 is worth
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