The current price of JCN stock is trading on the NYSE at 131.91. You have figured...
The current price of JCN stock is trading on the NYSE at 131.91. You have figured out that the price goes up 1.33 points on average 55% of the time and goes down .8 points on average 45% of the time. Find the arbitrage of the stock if the time is three months and the rate is 5%, (F=S0*e^(rt), find for F)
Homework Answers
The current price of JCN stock is trading on the NYSE at 131.91.
The arbitrage of the stock is = 131.91*e^(0.15) = 131.91 * 1.1618 = 153.253
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The current price of JCN stock is trading on the NYSE at 131.91.
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