Homework Answers
buy 2 puts and 1 stock
non random payoff=2*MAX(118-156,0)+156=156 or
=2*MAX(118-80,0)+80=156
present value=156/1.1
2*P+108=156/1.1
=>P=(156/1.1-108)/2
=>P=16.9090909
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I need the answer for question D only thank you Data: S. 108; X = 118;1+...
We will derive a two-state put option value in this problem. Data: So = 110; X...
We will derive a two-state put option value in this problem. Data: So = 110; X = 120; 1 + r= 1.1. The two possibilities for Stare 140 and 100. a. The range of Sis 40 while that of Pis 20 across the two states. What is the hedge ratio of the put? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Hedge ratio b. Form a portfolio of 2 shares of stock...
Check my work We will derive a two-state call option value in this problem. Data: So...
Check my work We will derive a two-state call option value in this problem. Data: So = 140; X = 150; 1 + r = 1.1. The two possibilities for spare 170 and 70. a. The range of Sis 100 while that of C is 20 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) points Skipped Hedge ratio eBook Print References b. Calculate the value of a call option...
We will derive a two-state call option value in this problem. Data: S0 = 140; X...
We will derive a two-state call option value in this problem. Data: S0 = 140; X = 150; 1 + r = 1.1. The two possibilities for ST are 170 and 70. a. The range of S is 100 while that of C is 20 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) Hedge ratio? b. Calculate the value of a call option on the stock with an exercise...
We will derive a two-state call option value in this problem. Data: Se 290; X 180...
We will derive a two-state call option value in this problem. Data: Se 290; X 180 300; 1 r= 1.1. The two possibilities for sT are 330 and a. The range of S is 150 while that of Cis 30 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) Hedge ratio b. Calculate the value of a call option on the stock with an exercise price of 300. (Do not...
Data: So 120; X 138; 1 and 102 r= 1.15. The two possibilities for Sm are...
Data: So 120; X 138; 1 and 102 r= 1.15. The two possibilities for Sm are 150 a-1. The range of S is 48 while that of Cis 12 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) Hedge ratio a-2. Calculate the value ofa call option on the stock with an exercise price of 138. (Do not use continuous compounding to calculate the present value of X in this...
Answer all questions and show work using hand formulas only. Do NOT answer the question if...
Answer all questions and show work using hand formulas only. Do
NOT answer the question if you cannot answer everything.
1.
2.
3.
TABLE 5.3 Risk and return of investments in major asset classes, 1927-2016 T-bills T-bonds Stocks Arithmetic average Risk premium Standard deviation max min 3.42 N/A 3.14 14.71 -0.02 5.51 2.08 8.14 38.07 -8.47 11.91 8.48 19.99 56.38 -43.73 Using Table 5.3 as your guide, what is your estimate of the expected annual HPR on the market index...
You may need to use the appropriate technology to answer this question. Consider the following data...
You may need to use the appropriate technology to answer this question. Consider the following data for a dependent variable y and two independent variables, x, and x, V X1 y 30 92 12 47 10 108 25 17 112 51 16 178 40 5 94 51 19 175 74 7 170 36 12 117 59 13 142 16 210 The estimated regression equation for these data is -18.74 2.01x, 4.73x Here, SST 15,229.6, SSR 14,077.25 0.2495, and 0.9575. (a)...
PLEASE ANSWER ASAP. I WILL RATE!! Woodpecker, Inc., stock has an annual return mean and standard...
PLEASE ANSWER ASAP. I WILL RATE!!
Woodpecker, Inc., stock has an annual return mean and standard deviation of 19 percent and 21 percent, respectively. What is the percentage smallest expected loss in the coming month with a probability of 2.5 percent? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round the 2-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.) You...
You may need to use the appropriate appendix table to answer this question. The average return...
You may need to use the appropriate appendix table to answer this question. The average return for large-cap domestic stock funds over three years was 14.4%. Assume the three-year returns were normally distributed across funds with a standard deviation of 4.4%. (a) What is the probability an individual large-cap domestic stock fund had a three-year return of at least 17%? (Round your answer to four decimal places.) (b) What is the probability an individual large-cap domestic stock fund had a...
I need help. I previously posted this question and the answer was incorrect. Please if you...
I need help. I previously posted this question and the answer
was incorrect. Please if you can help me as soon as possible that
would be great
Thank you
Problem 6-20 Refer the table below on the average risk premium of the S&P 500 over T-bills and the standard deviation of that risk premium. Suppose that the S&P 500 is your risky portfolio. Period 1926-2015 1992-2015 1970-1991 1948-1969 1926-1947 Average Annual Returns S&P 500 1 -Month Portfolio T-Bills 11.77 3.47...
We will derive a two-state put option value in this problem. Data: So = 110; X = 120; 1 + r= 1.1. The two possibilities for Stare 140 and 100. a. The range of Sis 40 while that of Pis 20 across the two states. What is the hedge ratio of the put? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Hedge ratio b. Form a portfolio of 2 shares of stock...
Check my work We will derive a two-state call option value in this problem. Data: So = 140; X = 150; 1 + r = 1.1. The two possibilities for spare 170 and 70. a. The range of Sis 100 while that of C is 20 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) points Skipped Hedge ratio eBook Print References b. Calculate the value of a call option...
We will derive a two-state call option value in this problem. Data: Se 290; X 180 300; 1 r= 1.1. The two possibilities for sT are 330 and a. The range of S is 150 while that of Cis 30 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) Hedge ratio b. Calculate the value of a call option on the stock with an exercise price of 300. (Do not...
Data: So 120; X 138; 1 and 102 r= 1.15. The two possibilities for Sm are 150 a-1. The range of S is 48 while that of Cis 12 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) Hedge ratio a-2. Calculate the value ofa call option on the stock with an exercise price of 138. (Do not use continuous compounding to calculate the present value of X in this...
Answer all questions and show work using hand formulas only. Do
NOT answer the question if you cannot answer everything.
1.
2.
3.
TABLE 5.3 Risk and return of investments in major asset classes, 1927-2016 T-bills T-bonds Stocks Arithmetic average Risk premium Standard deviation max min 3.42 N/A 3.14 14.71 -0.02 5.51 2.08 8.14 38.07 -8.47 11.91 8.48 19.99 56.38 -43.73 Using Table 5.3 as your guide, what is your estimate of the expected annual HPR on the market index...
You may need to use the appropriate technology to answer this question. Consider the following data for a dependent variable y and two independent variables, x, and x, V X1 y 30 92 12 47 10 108 25 17 112 51 16 178 40 5 94 51 19 175 74 7 170 36 12 117 59 13 142 16 210 The estimated regression equation for these data is -18.74 2.01x, 4.73x Here, SST 15,229.6, SSR 14,077.25 0.2495, and 0.9575. (a)...
PLEASE ANSWER ASAP. I WILL RATE!!
Woodpecker, Inc., stock has an annual return mean and standard deviation of 19 percent and 21 percent, respectively. What is the percentage smallest expected loss in the coming month with a probability of 2.5 percent? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round the 2-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.) You...
You may need to use the appropriate appendix table to answer this question. The average return for large-cap domestic stock funds over three years was 14.4%. Assume the three-year returns were normally distributed across funds with a standard deviation of 4.4%. (a) What is the probability an individual large-cap domestic stock fund had a three-year return of at least 17%? (Round your answer to four decimal places.) (b) What is the probability an individual large-cap domestic stock fund had a...
I need help. I previously posted this question and the answer
was incorrect. Please if you can help me as soon as possible that
would be great
Thank you
Problem 6-20 Refer the table below on the average risk premium of the S&P 500 over T-bills and the standard deviation of that risk premium. Suppose that the S&P 500 is your risky portfolio. Period 1926-2015 1992-2015 1970-1991 1948-1969 1926-1947 Average Annual Returns S&P 500 1 -Month Portfolio T-Bills 11.77 3.47...
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