Which

of the following only indirectly influences option prices, which means it's not an element in the option valuation formula?

Price discovery is the process of:

Market frictions such as transaction costs and liquidity constraints.

Paul has just found out that Company X, whose

stock is very high, is about to file for bankruptcy. No one else knows

this information yet. Does Paul's knowledge support the efficient

market hypothesis?

Imagine a market is efficient, which means there are no arbitrage opportunities, and information is included in prices almost immediately. What is the safest investment in such a market, assuming you don't want to have any risks about future prices, but you want certainty about payments in future?

In an asset

portfolio, the number of stocks, derivatives or other financial instruments is increased in order to: 

According to the Capital Asset Pricing Model (CAPM) a well diversified portfolio's rate of return is a function of 

Calculate the present value of a bond with the following features:

Annual

coupons

What is

the role of credit rating agencies concerning corporate bonds? (Only one choice is right).