a)price of call and put options are $7.916 and $0.9536
b)due to increase in strike price to $55 the price of call and put options changed to $0.0045 and $2.4584
c)due to doubling time of maturity the prices of call and put options changed to $10.41 and -$0.6560
NOTES:
Solution was solved using normal distribution , logerthemic and exponential tables.
show work, step by step and explain please. no excel. 1a. For a stock trading at...
1a. For a stock trading at $50 with 15% volatility and 2% risk free interest rate, find the prices of a one month put and call options with a strike price of $50. Determine the effect on both the put and call of increasing the strike price to $55 Determine the effect of doubling the time to maturity
1a. For a stock trading at $50 with 15% volatility and 2% risk free interest rate, find the prices of a one month put and call options with a strike price of $50. b. Determine the effect on both the put and call of increasing the strike price to $55 c. Determine the effect of doubling the time to maturity
Use an options calculator for the first 2 problems 1a prices of a one month put and call options with a strike price of $50 For a stock trading at $50 with 15% volatility and 2% risk free interest rate, find the Determine the effect on both the put and call of increasing the strike price to $55 b. Determine the effect of doubling the time to maturity C.
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