### Formula for the delta of the option as function

Assignment Help Financial Management
##### Reference no: EM131318037

What is the formula for the delta of the option as a function of (S0, U, D, R, VU, VD)?

• Consider a call option for an asset with the following parameters

• Current spot price is \$50 • Option expires in 12 months

• Each month the asset could increase in value by 3% or decrease in value by inverse

• The risk free rate is 25 basis points per month

• S0 = \$50, T=12, U=1.03, D=1/1.03, R=1.0025

#### What are the post-money and pre-money valuations

Onset VC invested \$750,000 to purchase preferred shares at \$1 per share in return for 31.58% ownership. What are the post-money and pre-money valuations? What is the number of

#### What would be the investment proportions of your portfolio

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill mo

#### Calculate the EAC for each machine

Vandelay Industries is considering the purchase of a new machine for the production of latex. Machine A costs \$3,066,000 and will last for six years. Variable costs are 40 per

#### Is price lower or higher of same bond in previous point

Calculate the price of a zero coupon with 10 years maturity, par value 100\$ assuming that the 10-year zero coupon rate is 5%, the default and recover probabilities are 50%, an

#### Proposes to expand his restaurant supply business

Jim Krakauer proposes to expand his restaurant supply business by adding an HVAC repair unit. Currently his customers, almost all restaurant owners, buy or order equipment fro

#### What is the monthly repayment on this loan

You and your spouse are planning on buying a \$200,000 house. Your bank is willing to give you a 30 year mortgage loan at 6.12% APR with monthly repayments. What is the monthly

#### The required return on robotics stock is

Joe purchased 800 shares of Robotics Stock at \$3 per share on 1/1/09. Bill sold the shares on 12/31/09 for \$3.45. Robotics stock has a beta of 1.9, the risk-free rate of retur

#### What is monthly loan payment

You want to buy a car, and a local bank will lend you \$12,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 8.75%, with i