An security is currently valued at a price of $199 per unit, and is expected to...
An security is currently valued at a price of $199 per unit, and is expected to have a continuously compounded quarterly return of 12 %. What is the expected price at the end of the quarter?
The answer should be 224.37 please show work.
Homework Answers
So FV factor for 3 months at 12% is 1.127496852
Hence, Value of $199 after 3 months is $224.37 ($199*1.127496852)
Add Answer to:
An security is currently valued at a price of $199 per unit, and
is expected to...
An security is currently valued at a price of $200 per unit, and is expected to...
An security is currently valued at a price of $200 per unit, and is expected to have a continuously compounded quarterly return of 8 %. What is the expected price at the end of the quarter? Enter price accurate to two decimal places. The number has to be 216. please show all the steps/ Thank you.
Problem 14.13. Suppose that a stock price has an expected return of 16% per annum and a volatility of 30% per annum. When the stock price at the end of a certain day is $50, calculate the following: (a) The expected stock price at the end of the next da
Problem 14.13. Suppose that a stock price has an expected return of 16% per annum and a volatility of 30% per annum. When the stock price at the end of a certain day is $50, calculate the following: (a) The expected stock price at the end of the next day. (b) The standard deviation of the stock price at the end of the next day. (c) The 95% confidence limits for the stock price at the end of the next...
Compute the expected return for the following portfolio. Security No. of Shares in Portfolio Price per...
Compute the expected return for the following portfolio. Security No. of Shares in Portfolio Price per Share ($) 45.31 17.28 11.16 Expected Return on Security (%) 29.7 20.9 12.4 97 96 The expected return on the portfolio is %. (Round to two decimal places.)
IBM stock currently sells for 49 dollars per share. Over 12 months the price will either...
IBM stock currently sells for 49 dollars per share. Over 12 months the price will either go by 11.5 percent or down by -7.0 percent. The risk-free rate of interest is 4.5 percent continuously compounded. What is the value of a call option with strike price 51 and maturity 12 months? a. 0.12291 b. 1.9353 c. 2.1795 d. 1.3285
1. Price of a 10 year bond with an 8% coupon rate is currently 80. If...
1. Price of a 10 year bond with an 8% coupon rate is currently 80. If interest on the bond is paid semiannually, the bond's yield to maturity is ____ 2. If Yield to maturity is more than its coupon rate, a bond will sell at a _____ and as the bond approaches maturity, the price will approach _____ 3. FF pays dividends quarterly. The next dividends is 15 cents and will be paid 3 months from today. Suppose future...
IBM stock currently sells for 49 dollars per share. Over 12 months the price will either...
IBM stock currently sells for 49 dollars per share. Over 12 months the price will either go up by 11.5 percent or down by -7.0 percent. The risk-free rate of interest is 4.5 percent continuously compounded. If you are short one call option with strike price 51 and maturity 12 months, what is the future value in 12 months of a delta-neutral portfolio? 21.908 18.764 20.533 18.273
Phoenix Company common stock is currently selling $20 per share. Security analysts at Smith Blarney have...
Phoenix Company common stock is currently selling $20 per share. Security analysts at Smith Blarney have have assigned the following probability distribution to the price of (and rate of return on) Phoenix stock one year from now: Price Rate of Return Probability $16 -20% 0.25 $20 0% 0.30 $24 +20% 0.25 $28 +40% 0.20 1. Assuming that Phoenix is not expected to pay any dividends during the coming year, determine the standard deviation of possible rates of return on Phoenix...
IBM stock currently sells for 49 dollars per share. Over 12 months the price will either...
IBM stock currently sells for 49 dollars per share. Over 12 months the price will either go by 11.5 percent or down by -7.0 percent. The risk-free rate of interest is 4.5 percent continuously compounded. If you are short one call option with strike price 51 and maturity 12 months, what is the present value of a delta-neutral portfolio? 10.649 20.944 17.469 19.114
14. An issue of common stock currently sells for $52.00 per share, has an expected annual...
14. An issue of common stock currently sells for $52.00 per share, has an expected annual dividend to be paid at the end of the year of $0.90 per share, and has an expected growth rate to infinity of 5.00% per year. The expected rate of return on this security is A) 62.78% B) 62.86% C) 61.36% D) 6.82% E) 6.73%
Question 12 2 pts A stock is currently selling for $41 per share. A call option...
Question 12 2 pts A stock is currently selling for $41 per share. A call option with an exercise price of $45 sells for $3.17 and expires in three months. If the risk-free rate of interest is 4.42 % per year, compounded continuously, what is the price of a put option with the same exercise price? (Round answer to 2 decimal places. Do not round intermediate calculations). Topic: Put-Call Parity
Compute the expected return for the following portfolio. Security No. of Shares in Portfolio Price per Share ($) 45.31 17.28 11.16 Expected Return on Security (%) 29.7 20.9 12.4 97 96 The expected return on the portfolio is %. (Round to two decimal places.)
IBM stock currently sells for 49 dollars per share. Over 12 months the price will either go up by 11.5 percent or down by -7.0 percent. The risk-free rate of interest is 4.5 percent continuously compounded. If you are short one call option with strike price 51 and maturity 12 months, what is the future value in 12 months of a delta-neutral portfolio? 21.908 18.764 20.533 18.273
IBM stock currently sells for 49 dollars per share. Over 12 months the price will either go by 11.5 percent or down by -7.0 percent. The risk-free rate of interest is 4.5 percent continuously compounded. If you are short one call option with strike price 51 and maturity 12 months, what is the present value of a delta-neutral portfolio? 10.649 20.944 17.469 19.114
14. An issue of common stock currently sells for $52.00 per share, has an expected annual dividend to be paid at the end of the year of $0.90 per share, and has an expected growth rate to infinity of 5.00% per year. The expected rate of return on this security is A) 62.78% B) 62.86% C) 61.36% D) 6.82% E) 6.73%
Question 12 2 pts A stock is currently selling for $41 per share. A call option with an exercise price of $45 sells for $3.17 and expires in three months. If the risk-free rate of interest is 4.42 % per year, compounded continuously, what is the price of a put option with the same exercise price? (Round answer to 2 decimal places. Do not round intermediate calculations). Topic: Put-Call Parity
Most questions answered within 3 hours.
-
A solid wood door 1.00 m wide and 2.00 m high is hinged along
one side...
asked 34 seconds ago -
Discounting cash flows involves:
A. taking the cash discount offered on a trade merchandise
B. estimating...
asked 35 seconds ago -
Raleigh Company manufactures two joint products. At the
split-off point, they have sales values of:
Product...
asked 1 second ago -
A
projectile is blue at a target. The distance from the point of
impact to the...
asked 1 minute ago -
1. Your grandmother has invested $4000 in a mutual fund each
year on your birthday (she...
asked 2 minutes ago -
HELP WITH SAS
Run the following DATA step to create a SAS data set called
ABC_CORP....
asked 14 minutes ago -
A researcher wishes to study the cumulative effects of several
combinations of HIV drugs. There are...
asked 34 minutes ago -
How
to make a simple game of whack a mole in pygame
asked 17 minutes ago -
Write a c/c++ program to read a list of students from a file and
create a...
asked 27 minutes ago -
Identify two different methods for collecting data in
qualitative research. What are the benefits and challenges...
asked 27 minutes ago -
I am suppose to have my array before the main class but I am
getting the...
asked 29 minutes ago -
Your task is to design the page table for the 32bit Pentium
microprocessor. Answer the following...
asked 36 minutes ago