Options A 06.answer.docVIP

《Options, Futures and other Derivatives》试卷（A）卷 ANSWER 一、（1）Futures contract: It is an agreement to buy or sell an asset for a certain price at a certain time in the future. (2) Implied volatility: The implied volatility of an option is the volatility for which the Black-Scholes price equals the market price. (3) A callable bond（可提前赎回债券）: It contains provisions(条款) that allow the issuing firm(发行公司) to buy back the bond at a predetermined price at certain times in the future. （4）risk-neutral valuation: Firstly, assume that the expected return from the stock price is the risk-free rate r,