### Construct a tracking portfolio for the option

Assignment Help Finance Basics
##### Reference no: EM132184075

Question - Consider a European put option on a non-dividend paying stock with strike price \$31 and time to expiration 4 months. The stock has a current price of \$30 and assume that in four months its price will be either \$34 or \$28. The risk-free interest rate is 3% per year.

1. Construct a tracking portfolio for the option.

2. What is the value of the put option?

#### Commercial banks and other financial institutions

Medium term & long term loans are obtained from commercial banks and other financial institutions. This funds are mainly used to finance major expansions or profit financing

#### How many yen could one u.s. dollar buy tomorrow

Suppose 144 yen could be purchased in the foreign exchange market for one U.S. dollar today. If the yen depreciates by 8.0% tomorrow, how many yen could one U.S. dollar buy

#### A company is considering the purchase of one of two mutually

A company is considering the purchase of one of two mutually exclusive projects for improving its assembly line. The company plans to use a 12% cost of capital for evaluating

#### Fill the model for company gopro

Need help to fill the following model for Company "GoPro" and write all the reasonable assumption he/she used in valuation. List what kind of materials he/she use to come up

#### Prepare and interpret a complete ratio analysis

Cross-sectional ratio analysis Use the following financial statements for Fox Manufacturing Company for the year ended December 31, 2003, along with the industry average rat

#### Building financial models

The given tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets

#### Straight-line to a zero book value over the life of project

1. Thornley Machines is considering a 3-year project with an initial cost of \$618,000. The project will not directly produce any sales but will reduce operating costs by

#### Determine equity cash flow for year

Using the methodology outlined in Exhibit 6.16, (chapter 6) determine equity cash flow for year 1. Use the growing -perpetuity formula based on equity cash flow) to compute

### Write a Review

#### Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!