Question: need help finnance options need help fast please anything Remaining Tinie: 1 hour, 51 minutes. 12seconds a Question Completion Busters Path p QUESTION 42 D


need help finnance options need help fast please anything


Remaining Tinie: 1 hour, 51 minutes. 12seconds a Question Completion Busters Path p QUESTION 42 D B A C F The current price of a non-dividend-paying stock is $80 with a volatility of 28%, The risk-tree rate is 14%. Consider a European Put option with mecumj d 12 momma we um price of $90. Answer the following questions, rounding your answers to 3 decimal places. Show your working in detail and jutt you wemrs 1. What is the coefficient for the up movement? 2. What is the coefficient for the down movement? 3. Use a two-step binomial tree, like the one in the figure above, to value the option. 4. Calculate A at points A, B and C (points based on the figure above). 5. What does A signify for a market maker who has sold 1 option? : 3 (12p1) . . = . T . P . Q TT TT Paragraph : Arial an Save All Acquis Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook ProGOOGZA Hammning Timer d hour, 50 minutes, OU seconds QUESTION 42 A E C F The current price of a non-dividend-paying stock is $60 with a volatility of 20%. The risk-free rate in 8%. Consider a European Call option with maturity of 1 your and strike price of $54. Answer the following questions, rounding your answers to 3 decimal places, Snow your working in detail and justify your answers 1. What is the coefficient for the up movement? 2. What is the coefficient for the down movement? 3. Use a two-step binomial tree, like the one in the figure above, to value the option. 4. Calculate A at points A, B and C (points based on the figure above). 5. What does A signify for a market maker who has sold 1 option? Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers
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