Question stock of apple is currently selling at 143 suppose, Ask an Expert

Finance

Question: Stock of Apple is currently selling at $143. Suppose in the next six months it can increase by 10% or decrease by 5%. The risk-free interest rate is 1% per six month period. Use the one period binomial option pricing model to value a European call option with strike price of $140 and time to maturity of six months.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92272017

Have any Question?Write your Review or question?

Related Questions in Basic Finance

1 what criteria would you use to evaluate projects in terms

1. What criteria would you use to evaluate projects in terms of selection? 2. What factors are important to included in project plans to ensure effective planning and management?

Abc company writes 39 checks a day for an average amount of

ABC Company writes 39 checks a day for an average amount of $1438 each. These checks generally clear the bank in 3 days. In addition, the firm generally receives an average of $5636 a day in checks that are deposited imm ...

Explain the goals people have for the course that project

Explain the goals people have for the course that project quality management in addition to getting an A.

The data in this problem is hypothetical it is march now a

The data in this problem is hypothetical. It is March now. A September futures contract on 10,000 MMBtu of natural gas settled for $2.95 per MMBtu. Assume that the contract has exactly 6 months to maturity. Present valu ...

A company has 6 percent coupon compounded semiannually

A company has 6 percent coupon (compounded semiannually) bonds on the market with 15 years to maturity, and the par value of $1,000. At what price should the bonds be selling for if YTM is 7%? Had the bond been selling a ...

Starting with her next salary payment next month kathy

Starting with her next salary payment (next month), Kathy intends to save $200 each month. If the interest rate is 1% per month, how much will Kathy have saved after 12 months (12 deposits altogether over 12 months)? Fil ...

1 construct an amortization schedule for the 300000 loan

1. Construct an amortization schedule for the $300,000 loan with a 3.5% interest rate compounded monthly. The loan will be paid back in 15 years making monthly payments. Identify the principal and interest payment of ea ...

Suppose a new ergonomic safety intervention cost 405000

Suppose a new ergonomic, safety intervention cost $405,000. Further suppose the intervention is certain to prevent all back injuries associated with the job. Over the last three years, the employer has averaged 14 injuri ...

Bacchus vineyards inc is expected to pay its first annual

Bacchus Vineyards, Inc. is expected to pay its first annual dividend five years from now. That payment will be $4.39 a share. Starting in year six, the company will increase the dividend by 3.7 percent per year. The requ ...

A study finds that the prices of stocks prior to large

A study finds that the prices of stocks prior to large dividend increases show on average consistently positive abnormal returns. Is this a violation of the efficient market hypothesis? Explain.

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

Recent Questions

Ask Basic Finance Expert