Determine the black-scholes value of a? one-year

Assignment Help Financial Management

Reference no: EM131319522

Roslin Robotics stock has a volatility of 36% and a current stock price of $51 per share. Roslin pays no dividends. The? risk-free interest is 5%. Determine the Black-Scholes value of a? one-year, at-the-money call option on Roslin stock.

The? Black-Scholes value of a? one-year, at-the-money call option on Roslin stock is: ?$ ____

Reference no: EM131319522

Questions Cloud

Compare gilgamesh and odysseus as to their heroic qualities : Compare Gilgamesh and Odysseus as to their heroic qualities, noting similarities and differences, using specific examples from the epics.Summarize what this indicates about differences between ancient Mesopotamian and Greek cultures in their ideal..

Calculate the historical return for each stock for each year : State your portfolio objectives. Then construct a 10-stock portfolio that you feel is consistent with your objectives. (Use companies that have been public for at least 5 years.) Obtain annual dividend and price date for each of the past 5 years. Cal..

Definition of expected value : Let X have a Poisson distribution with parameter lambda. Show that E(X)= lambda directly from the definition of expected value. [Hint: The first term in the sum equals 0, and then x can be canceled. Now factor out lambda and show that what is left..

Say about gender discrimination : Based on your results what can you say about gender discrimination? Is this the causal evidence of gender on earnings? Why or Why not?

Determine the black-scholes value of a? one-year : Roslin Robotics stock has a volatility of 36% and a current stock price of $51 per share. Roslin pays no dividends. The? risk-free interest is 5%. Determine the Black-Scholes value of a? one-year, at-the-money call option on Roslin stock. The? Black-..

Set up the null and the alternative hypothesis : Set up the null and the alternative hypothesis. What is your test statistic? What is the critical statistics? Test at the 95% significance level. Based on your evidence, is Subway shortchanging customers? Should you sue? How do your findings chan..

What should be the price she is willing to pay for the bond : A 10-year, 5% semiannual coupon bond, with a par value of $1,000 is 1 year old, and may be called in another 3 years at a call price of $1,045. Assume you purchase this bond today for $1.080. What is the nominal yield to call? Assume that Margie Pere..

Number of students between two intervals : If we did not know that the grade distribution at Harvard was normal, is there any other technique we can apply to find out the number of students between two intervals?

How the element of sound contributes to word painting : "Cruda Amarilli" madrigal by Monteverdi and discuss how the element of Sound contributes to word painting

User Account

All Pages