Question: Ceteris paribus (keeping all else constant), a put option premium is $2, the Vega is 0.34 the implied volatility is 46 and goes to 47,

Ceteris paribus (keeping all else constant), a put option premium is $2, the Vega is 0.34 the implied volatility is 46 and goes to 47, what will be the new put premium $2.00 $1.66 $2.34 $3.34 $6.72

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Corporate Finance Course it's about Whole Foods purchase by Amazon. below are the questions need to be answered, also the documents are attached. QUESTIONS: 1.The investment thesis on AMZN has ALWAYS...

answer all Makeover Inc. believes that at its current stock price of $16.00 the firm is undervalued in the market. Makeover plans to repurchase 2.4 million of its 20 million shares outstanding. The...

Dear Sir I Would like the answers of the documents i attach School of Business and Economics EXAM Course : Code : Date Time Location Risk Management EBC4056 : 3 June, 2010 : 9.00 - 12.00 : MECC...

Explain clearly. Problem 7.11. A financial institution has entered into a 10-year currency swap with company Y. Under the terms of the swap, the financial institution receives interest at 3% per...

1) Due to excellent performance over the past year, the board of your hedge fund has elected to award you a free month-long holiday in Hawaii for you and your family. The aeroplane and hotel bookings...

FIN201 Final Exam Sample MULTIPLE CHOICE. 1. Why will banks permit the use of an overdraft as suitable for funding the purchase of inventory that will quickly be converted into cash? A. To assist a...

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

Can you please help me solve these 10 Econ questions? I also attached the chapter just in case. Thanks so much!! :) MARKETS AND HOW THEY WORK 177 9.0 CHAPTER 9 LEARNING GOALS After reading this...

PLEASE COMPLETE NO LATER THAN 10/07 @8:00AM Each question(1,2,& 3) must be a minimum of 200 words. Please make answers detailed and knowledgeable based off the attached reading. ARE YOU ABLE TO...

Hi I need answers immediately. Attached is a file. I need the detailed solutions (no excel, can be typed or handwritten) to the long answer portions ONLY. Please read instructions for rounding rules....

Maire, a widow in failing health, wishes to leave her estate equally to her adult children. She has a son, Graham, and a daughter, Bridget. Maire has two concerns. With good reason, she lacks...

What minimum horsepower must a motor have to be able to drag a 310-kg box along a level floor at a speed of 1.20m/s if the coefficient of friction is 0.45?

What is a financial statement that projects a firm s financial performance and condition? Question 4 options: A ) Profit and Loss Statement B ) Balance Sheet Statement C ) Cash Flow Statement D ) Pro...

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...