Online Access Free 8002 Exam Questions

When calculating the implied volatility from an option price we use the bisection method and know initially that the volatility is somewhere between 1% and 100%. How many iterations do we need in order to determine the implied volatility with accuracy of 0.1%?

• A.25
• B.100
• C.10
• D.5

Which of the provided answers solves this system of equations?
2y - 3x = 3y +x
y2 + x2 = 68

• A.x = -2; y = -8
• B.x = 1; y = square root of 67
• C.x = 2; y = -8
• D.x = 2; y = 8

A simple linear regression is based on 100 data points. The total sum of squares is 1.5 and the correlation between the dependent and explanatory variables is 0.5. What is the explained sum of squares?

• A.0.75
• B.1.125
• C.0.375
• D.0.3333

What is the 40th term in the following series: 4, 14, 30, 52, ...?

• A.4840
• B.4960
• C.240
• D.4598

A biased coin has a probability of getting heads equal to 0.3. If the coin is tossed 4 times, what is the probability of getting heads at least two times?

• A.None of these
• B.0.2646
• C.0.7367
• D.0.3483