Question

Question 3 (1 point) To select a benchmark index to compare performance of Vanguard Tax-Managed Balanced Adm fund with, you should select which of the following a fund with a balanced holding of bonds and stocks Russell 1000 index OS&P500 index Russell 3000 index Question 4 (1 point) Here is a screen shot of Amazon call option contract expiring 11/29 Calls for November 29, 2019 Contract Name Last Trade Date Strike Last Price Bid Ask Change AMZN191129001400000 2019-10-29 11:26AM EDT 1,400.00 360.00 376.50 383.40 0.00 AMZN191129C01500000 2019-10-21 12:29PM EDT 1,500.00 286.10 277.15 284.00 0.00 Change Volume Open Interest Implied Volatility - - 2 54.36% - - 1 42.32% - 40 40 31.72% AMZN191129C01595000 2019-10-25 10:34AM EDT 1,595.00 150.87 183.65 190.50 0.00 Current stock price is 1,776.66, for the third option (row 3), strike price (i.e. exercise price), you bought this option. is your option in the money, out of money, or else, fill in the blank

Answer 1

Question 3:

To select a benchmark index to compare performance of Vanguard Tax managed Balanced Adm Fund with, you should select which of the following:

Ans. a fund with a balanced holding of bonds and stocks

This is because Vanguard Tax managed Balanced Adm Fund provides exposure to the mid- and large-capitalization segments of the U.S. stock market with about half of assets, while the remaining assets are invested in federally tax-exempt municipal bonds.

So the benchmark comparison index should also be similar to it. However, Russell 1000 Index, S&P 500 Index and Russell 3000 Index consist of only equity stocks.

Question 4:

The option is in the money.

This is because the strike price is less than the current stock price.