When ABC stock trades at $40 its July 30 calls trade at $3. What will be...
When ABC stock trades at $40 its July 30 calls trade at $3. What will be the value of this option at expiration if the stock price at expiration is $40? $30? $25?
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When ABC stock trades at $40 its July 30 calls trade at $3. What
will be...
When ABC stock trades at $40 its July 50 calls trade at $3. What will be...
When ABC stock trades at $40 its July 50 calls trade at $3. What will be the value of these options at expiration if the stock price at expiration is $40? $50? $75?
(1 point) A stock currently trades at $44, and the volatility of its return is 46%....
(1 point) A stock currently trades at $44, and the volatility of
its return is 46%. The continuously compounded rate of interest is
3%. Consider a call option struck at $49, with 100 days to
expiration (recall that there are 251 trading days in one
year).
a) What is the price of the option (rounded to the nearest
cent)?
b) What is the option's delta (rounded to four decimal
places)?
c) Use your answer from (b) to estimate the value...
I answered wuestion 2 and 3. I just need the first question answered please. stock trades...
I
answered wuestion 2 and 3. I just need the first question answered
please.
stock trades question.
Astock trades for $45 per share. A call option on that stock has a strike price of $53 and an expiration date twelve months in the future. The volatility of the stock's returns is 37%, and the risk-free rate is 2%. What is the Black and Scholes value of this option? The Black and Scholes value of this call option is $ ....
A call option has a strike of $10. The stock currently trades at $30. The stock...
A call option has a strike of $10. The stock currently trades at $30. The stock can have two possible values at maturity, $70 with 30% probability and $10 with 70% probability. What is the price of a call option on this stock? what will be the price of a put option?
ABC STOCK
The current price of ABC stock is $30 . During the next year the stock price can either go up by 30 %, or go down by 20% . There is a put option on ABC stock with 1-year time to expiration and with an exercise price of $27. The risk free rate is 10% . You are going to calculate the current price of the put option using the hedge portfolio method . In order to form a riskless...
Consider a call and a put option, both with strike price of $30 and 3 months to expiration. The call trades at $4, the put price is $5, the interest rate is 0, and the price of the underlying stock is...
Consider a call and a put option, both with strike price of $30 and 3 months to expiration. The call trades at $4, the put price is $5, the interest rate is 0, and the price of the underlying stock is $29. a.Suppose the stock does not pay dividends. Is there an arbitrage? If so, write down the sequence of trades and calculate the arbitrage profit you realize in 3 months. If not, explain why not. b.Suppose the stock will...
. Company ABC trades in the stock market. Its β = 1. The market portfolio return...
. Company ABC trades in the stock market. Its β = 1. The market portfolio return is 12%. What is the expected return on company’s stock?
Consider a European put option on the stock of XYZ, with a strike price of $30...
Consider a European put option on the stock of XYZ, with a strike price of $30 and two months to expiration. The stock pays continuous dividends at the annual continuously com- pounded yield rate of 5%. The annual continuously compounded risk free interst rate is 11%. The stock currently trades for $23 per share. Suppose that in two months, the stock will trade for either $18 per share or $29 per share. Use the one-period binomial option pricing to find...
Problem 4: - You are a trader who trades both puts and calls on SleazeCo. Information...
Problem 4: You are a trader who trades both puts and calls on SleazeCo. Information about current market conditions is displayed below.$$ \begin{array}{lclcc} \text { Stock Price } & \text { Exercise Price } & \text { Expiration Date } & \text { Call Price } & \text { Put Price } \\ \hline 88 & 90 & 1 / 12^{\text {th }} \text { of a year } & 2.8546 & 4.6032 \\ 88 & 95 & 1 / 12^{\text...
Question 11 help Thanks 11) An investor purchases an ABC 60 call for $1.50 in January with March expiration. Followi...
Question 11 help Thanks
11) An investor purchases an ABC 60 call for $1.50 in January with March expiration. Following a stock price increase in February, ABC 60 calls are trading for $7.50, ABC 70 calls are trading for $2.00, and ABC 70 puts are trading for $2.00. All option contracts cover 100 shares and have March expiration. As a follow-up strategy in February, the investor sells an ABC 60 call for $7.50 and purchases three ABC 70 calls at...
(1 point) A stock currently trades at $44, and the volatility of
its return is 46%. The continuously compounded rate of interest is
3%. Consider a call option struck at $49, with 100 days to
expiration (recall that there are 251 trading days in one
year).
a) What is the price of the option (rounded to the nearest
cent)?
b) What is the option's delta (rounded to four decimal
places)?
c) Use your answer from (b) to estimate the value...
I
answered wuestion 2 and 3. I just need the first question answered
please.
stock trades question.
Astock trades for $45 per share. A call option on that stock has a strike price of $53 and an expiration date twelve months in the future. The volatility of the stock's returns is 37%, and the risk-free rate is 2%. What is the Black and Scholes value of this option? The Black and Scholes value of this call option is $ ....
Consider a European put option on the stock of XYZ, with a strike price of $30 and two months to expiration. The stock pays continuous dividends at the annual continuously com- pounded yield rate of 5%. The annual continuously compounded risk free interst rate is 11%. The stock currently trades for $23 per share. Suppose that in two months, the stock will trade for either $18 per share or $29 per share. Use the one-period binomial option pricing to find...
Problem 4: You are a trader who trades both puts and calls on SleazeCo. Information about current market conditions is displayed below.$$ \begin{array}{lclcc} \text { Stock Price } & \text { Exercise Price } & \text { Expiration Date } & \text { Call Price } & \text { Put Price } \\ \hline 88 & 90 & 1 / 12^{\text {th }} \text { of a year } & 2.8546 & 4.6032 \\ 88 & 95 & 1 / 12^{\text...
Question 11 help Thanks
11) An investor purchases an ABC 60 call for $1.50 in January with March expiration. Following a stock price increase in February, ABC 60 calls are trading for $7.50, ABC 70 calls are trading for $2.00, and ABC 70 puts are trading for $2.00. All option contracts cover 100 shares and have March expiration. As a follow-up strategy in February, the investor sells an ABC 60 call for $7.50 and purchases three ABC 70 calls at...
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