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