Below is some actual data for call options on Netflix (NFLX) from November 27, 2023. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Below is some actual data for call options on Netflix (NFLX) from November 27, 2023. The options expire on January 19, 2024. NFLX's most recent closing price was $479.17, and the 1-month treasury rate (risk free rate) is 5.54% (annualized). There are 36 trading days until expiration (assume 252 trading days in the year). Fill in the Implied Volatility column below (you can use the spreadsheet I posted on Blackboard, but I'd encourage you to build your own Black-Scholes-Merton spreadsheet and then use it, it's a good exercise!) Strike Price $150 $200 $300 $350 $400 $460 $480 $500 $650 $750 Option Price $331.45 $281.20 $181.50 $133.87 $85.00 $36.45 $24.80 $16.10 $0.39 $0.09 Implied Volatility Comment on your findings Below is some actual data for call options on Netflix (NFLX) from November 27, 2023. The options expire on January 19, 2024. NFLX's most recent closing price was $479.17, and the 1-month treasury rate (risk free rate) is 5.54% (annualized). There are 36 trading days until expiration (assume 252 trading days in the year). Fill in the Implied Volatility column below (you can use the spreadsheet I posted on Blackboard, but I'd encourage you to build your own Black-Scholes-Merton spreadsheet and then use it, it's a good exercise!) Strike Price $150 $200 $300 $350 $400 $460 $480 $500 $650 $750 Option Price $331.45 $281.20 $181.50 $133.87 $85.00 $36.45 $24.80 $16.10 $0.39 $0.09 Implied Volatility Comment on your findings
Expert Answer:
Answer rating: 100% (QA)
To calculate the implied volatility using the BlackScholesMerton model we need to iterate through di... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Using and citing Bevan, define active empathic listening. Report on both the meaning and significance of the definition Explain how you can use active empathic listening to help you improve your...
-
Nitrogen gas is compressed from 80 kPa and 27C to 480 kPa by a 10-kW compressor. Determine the mass flow rate of nitrogen through the compressor, assuming the compression process to be (a)...
-
Provide examples for both consumer goods and services of how companies might use direct marketing as part of an IMC program.
-
Zappos.com is a popular website known mainly for its discounted shoe sales. In 2012, a hacker hacked into the Zappos website in an effort to obtain the personal account information of Zappos...
-
You have been given the expected return data shown in the first table on three assets'F, G, and H'over the period 20132016. Using these assets, you have isolated the three investment alternatives...
-
1) Show a calculation of both the speed and the acceleration of the stopper for the 4 Newton trial. SHOW YOUR WORK BELOW! 2) Make 2 graphs: a. Force versus speed. b. Force versus speed squared. c....
-
The Sweet Candy Company includes in its product line a number of different mixed nut products. The Chalet nut mix is required to have no more than 25 percent peanuts and no less than 40 percent...
-
Intro You bought a share of stock for $100. It is now worth $106 and has just paid an annual dividend of $2 per share. Part 1 What was the dividend yield? 4+ decimals Submit Part 2 What was the...
-
Contrast a complete liquidation with the legal dissolution of a corporation.
-
Why were tax shelters popular before the Tax Reform Act of 1986? Briefly explain why tax shelter investments are not as popular today.
-
How does an individual qualify for the credit for the elderly?
-
When is "double taxation" on a corporate liquidation an advantage over nonrecognition at the corporate level?
-
Why would the exclusion on sale of residence be prorated?
-
A workshop has 4 machines and each unit needs to pass through each machine to be completed: machine 1+machine 2machine 3-machine 4 The capacity of the machines are as follows, 10, 25, 60, and 55...
-
The text defined intrinsic value as the value of an asset given a hypothetically complete understanding of the assets investment characteristics. Discuss why hypothetically is included in the...
-
General Motors invests in securities of other companies. Access GMs 2019 10-K (which includes financial statements) using EDGAR at www.sec.gov. Required: 1. What is the amount and classification of...
-
Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2024 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense...
-
Refer to the data provided in E 1719. Data from in E 17-19 Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beales fiscal year), the following...
-
Why has subordinate legislation come to prominence?
-
What are the advantages of a settlement over a court trial?
-
Define appellant ; respondent ; counterclaim ; counsel ; bench ; writ ; settlement ; pleadings ; party and party costs ; res judicata .
Study smarter with the SolutionInn App