The half year call choice has a strike cost of $38. On the off chance that the
Question:
A non-profit paying stock is as of now esteemed at $100. The alternative strike cost is $100, the danger free rate is 2%, and the stock unpredictability is 30%. In the event that there are 2 binomial periods, what is the measure of getting (B) needed to imitate the call alternative position?
A stock sells for $61.25. The half year call alternative cost on the stock is equivalent to the half year put choice cost and their strike cost is $60. Accepting the nonstop danger free rate is 5%, what is the profit rate on the stock?
What is the current spot cost of gold if the rent rate on the agreement is 1.25%, the danger free rate is 3%, and the 9-month forward cost is $1,000?
A non-profit paying stock is at present esteemed at $100. The choice strike cost is $100, the danger free rate is 2%, and the stock unpredictability is 30%. Utilizing 2 binomial periods, what is the 1-year call alternative cost?
Assume we need to develop a term coordinated with arrangement of two bonds. We have a long situation in a 10-year, 6.5% yearly coupon security that yields 5.5% and has a length of 7.9366 years. For each agreement we are long, what number of agreements do we need to short if the other security is a 18-year, 4.75% yearly coupon security that yields 10% and has a span of 10.5104 years?
Assume Samsung produces 800 telephones and each requires 2 oz. of silver to create. The standard deviation of the telephone cost is 0.15 and the standard deviation of the silver cost is 0.55. The relationship among's silver and the telephone cost is 0.65. One silver agreement calls for conveyance of 25 oz. of platinum. What number of agreements are expected to limit the change of benefit?
A non-profit paying stock is at present esteemed at $100. The alternative strike cost is $100, the danger free rate is 2%, and the stock unpredictability is 30%. On the off chance that there are 2 binomial periods, what is the delta of a 1-year call choice at time 0 (today)?
An Introduction to Management Science Quantitative Approach to Decision Making
ISBN: 978-1337406529
15th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran