Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Use Black Scholes option valuation to find the value of a put option with a strike price of $20, a risk free rate of 8%, variance of returns = 36%, an expiration date six months from now, given that the put is currently at the money. What is the time value of this put option?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M944633

Have any Question? 


Related Questions in Basic Finance

Suppose a natural disaster wipes out a significant portion

Suppose a natural disaster wipes out a significant portion of the economy's capital stock, reducing the potential level of output. What would you expect to happen to the long-run real interest rate? What impact would thi ...

If the rate of return on the sampp 500 index was 23 for

If the rate of return on the S&P 500 index was 23% for 2009, and the risk-free rate at the end of 2009 was 1%, calculate the equity risk premium for 2009. Recalculate the equity risk premium using 1981 data, when the ris ...

Jackson corporations bonds have 19 years remaining to

Jackson Corporation's bonds have 19 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9.5%. The bonds have a yield to maturity of 12%. What is the ...

Determine the appraised value a fire station built four

Determine the appraised value. A fire station, built four years ago, has an estimated life of 50 years. The building has 20,000 square feet and the cost to replace is $100 per square foot. The lot is worth $120,000 vacan ...

Examination1 if purchasing power parity applied to big

Examination 1. If purchasing power parity applied to Big Macs, and a Big Mac cost $2.50 in the United States while the British pound cost $1.50 and €0.90 euros could be obtained for $1.00 a) how much would the Big Mac co ...

Why are direct financing transactions more costly or

Why are direct financing transactions more costly or inconvenient than intermidiated transactions?

Assume that the fed is targeting an interest rate and the

Assume that the Fed is targeting an interest rate and the demand for money increases. Explain why the money supply will increase.

If the current short- term rate is 5 percent and the

If the current short- term rate is 5 percent and the current long- term rate is 4 percent, what is the expected short- term interest rate? (Use the expectations theory)

Assignment instructions-1 enter your student class number

Assignment Instructions- 1. Enter your student class number in cell A1 under the "Firm's debt tab" 2. Look at that "Spreads&Treasuries" tab to find your rating. Each of your debts has the same rating. Enter the rating le ...

Impact of stock market uncertainty consider a period in

Impact of Stock Market Uncertainty : Consider a period in which stock prices are very high, such that investors begin to think that stocks are overvalued and their valuations are very uncertain. If investors decide to mo ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate