What is the extrinsic value o f a 55-stirke put option currently trading at $10.64 on a

Fantastic news! We've Found the answer you've been seeking!

Question:

What is the extrinsic value o f a 55-stirke put option currently trading at $10.64 on a non-dividend-paying stock currently priced at $62.79 if the gamma is .06 the stock's historic volatility is 30% the option delta is .65, and expires in 86 days?

Posted Date: May 18, 2024 09:00 AM

See More Questions

Though the McDonalds (MCD) menu of hamburgers, cheeseburgers, the Big Mac, Quarter Pounder, Filet-O-Fish, and Chicken McNuggets is easily recognized, McDonalds financial statements may not be as...
Four different proprietorships, Alpha, Bravo, Charlie and Delta, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of owner's equity, are...
Refer to Data Set 16 in Appendix B for the earthquake magnitudes. Use a 0.01 significance level to test the claim that the median is equal to 1.00. Use the Wilcoxon signed-ranks test for the claim...
Give examples of how a board member can increase the organization s social, intellectual, and fi nancial capacity.
Pfizer, a pharmaceutical company, incurs the following costs: a. Payment of booth registration fee at a medical conference to promote new products to physicians b. Cost of redesigning an insulin...
The following four question relate to these three bonds: US Issuer: Microsoft Merck Treasury Issuer Credit AAA AAA A Rating Face $1,000 $1,000 $1,000 Amount Term 5 years 5 years 5 years Semi- Annual...
Consider the cointegrated model Yt Xt = 0Xt + vit, Xt-1+U2t, where it and v2t are mean zero serially uncorrelated random variables with E [vtv2j] = 0 for all t and j. Derive the vector error...
Why do we need a theory to understand real-world labor market problems?
Which of the following statements about the training of a neural network is false? a. The training of a neural network is an iterative process of predicting an observation or batch of observations...
Who are the key actors in the labor market? What motives do economists typically assign to workers and firms?
What is labor economics? Which types of questions do labor economists analyze?
What mix of inputs should be used to produce a given level of output?
SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents...
Using Gauss-Jordan elimination, invert this matrix ONLY 0 0 0 0 1
Which of the following is not a characteristic that makes information useful? a. It is reliable. c. It is inexpensive. b. It is timely. d. It is relevant.
If the chief executive insists on a vote on the board, what questions should the board ask before making the decision?
Which of the following is a primary activity in the value chain? a. purchasing c. post-sales service b. accounting d. human resource management

What is the extrinsic value o f a 55-stirke put option currently trading at $10.64 on a

Question:

Expert Answer:

Students also viewed these finance questions