Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1.By Using the Black-Schoeles-Merton Model find out the price of XYZ's call option which has a strike price of $80, and expires in 132 days. XYZ's stock is currently trading at $87 and is expected to pay a dividend of $2.30 next year. The standard deviation of XY2's stock price is estimated to be 28%, its beta is estimated to be 1.25 and the risk-free rate of return is currently 4%.

2. A stock with a current price of $25 will either move up by a factor of 1.4 or down by a factor of 0.8 over the next period. The risk-free rate of interest is 3.5%. What is the value of a call option with a strike price of $30?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M939381

Have any Question? 


Related Questions in Basic Finance

Why should capital budgeting for projects in an overseas

Why should capital budgeting for projects in an overseas subsidiary be assessed from the parent's perspective rather than just the subsidiary's cash flow perspective? What additional factors deserve consideration in mult ...

A student remarks 135000000 shares of general electric were

A student remarks: "135,000,000 shares of General Electric were sold yesterday on the New York Stock Exchange, at an average price of $15 per share. That means General Electric just received a little over $2 billion from ...

1 tall trees inc is using the net present value npv when

1. Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 9.83 percent. The initial outlay for the pr ...

During 2015 rainbow umbrella corp had sales of 920000 cost

During 2015, Rainbow Umbrella Corp. had sales of $920,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $125,000, and $155,000, respectively. In addition, the company ...

Jullian was curious if regular excise really helps weight

Jullian was curious if regular excise really helps weight loss,she decided to perform a hypothesis test. A random sample of 5 Kansas State students was chosen. The students took a 30-minute exercise every day for 6 month ...

1 what is the basic objective in a logistics design and

1. What is the basic objective in a logistics design and analysis study? Is it normally a one-time activity? 2. What is sensitivity analysis, and what is its role in systems design and analysis? 3. Why is it important to ...

At approximately what percentage of the ultimate tensile

At approximately what percentage of the ultimate tensile stress (UTS) does a common bolt (e.g., ASTM A490 or SAE J429 GR 8) yield in pure tension? Name two simple ways to pick a preload ? What's the easiest way to pick a ...

Discussionresearch a company with an international presence

Discussion Research a company with an international presence. Describe the type of work performed; measures that the company's industry area uses for productivity; and the pitfalls and promise that the metrics provide. W ...

Surmec inc has sales of 21 million last year the companys

Surmec, Inc. has sales of $2.1 million last year. The company's primary business line is manufacturing of nuts and bolts. Since this is a mature industry, the analysts are certain that the sales will grow at a steady rat ...

During a congressional committee hearing at which goldman

During a Congressional Committee hearing at which Goldman Sachs CEO Lloyd Blankfein testified, Senator David Pryor of Arkansas asked Blankfein, "Why would clients believe in Goldman Sachs?" Blankfein replied that Goldman ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro