The current price of Ampere Co is 136. The price of an option with strike price...
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The current price of Ampere Co is 136. The price of an option with strike price one month ahead (i.e.) March 2023 is 136 is 9.50, assuming the interest rate is 0.25% a month. What is the expected price if the option were to be exercised next month (assume that the expected price if the option is not exercised is symmetric about the current price). 137. Currently Ampere makes about 6000 cars a quarter, recently there have been some fires in car crashes. Suppose that if this problem persists the price of shares will fall to 100 dollars by May 203 (3 months hence). If the problem is quickly solved the stock price will bounce back to 172. Assuming the interest rate is 0.25% a month, what should be the value of binomial call option with strike price 136? 138. Right now Ampere is facing problems securing enough batteries suppose each month's supply can either go up by 5% or down by 5% and that will be fully reflected in the stock price because it is the only constraint on increasing output. What is a January call option worth today (assuming the interest rate is 0.25% a month). The current price of Ampere Co is 136. The price of an option with strike price one month ahead (i.e.) March 2023 is 136 is 9.50, assuming the interest rate is 0.25% a month. What is the expected price if the option were to be exercised next month (assume that the expected price if the option is not exercised is symmetric about the current price). 137. Currently Ampere makes about 6000 cars a quarter, recently there have been some fires in car crashes. Suppose that if this problem persists the price of shares will fall to 100 dollars by May 203 (3 months hence). If the problem is quickly solved the stock price will bounce back to 172. Assuming the interest rate is 0.25% a month, what should be the value of binomial call option with strike price 136? 138. Right now Ampere is facing problems securing enough batteries suppose each month's supply can either go up by 5% or down by 5% and that will be fully reflected in the stock price because it is the only constraint on increasing output. What is a January call option worth today (assuming the interest rate is 0.25% a month).
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Answer rating: 100% (QA)
To calculate the expected price of the option if it were to be exercised next month we need to consider the expected price of the underlying stock Sin... View the full answer
Related Book For
Financial Management Theory and Practice
ISBN: 978-0176517304
2nd Canadian edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
Posted Date:
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