Value of european put option with strike price

Assignment Help Financial Management
Reference no: EM131343610

A stock with an annual standard deviation of 23 percent currently sells for $73. The risk-free rate is 3.6 percent. Whta is the value of a European put option with a strike price of $75 and 72 days to expiration? (Use 365 days in a year)

Reference no: EM131343610

Questions Cloud

Discuss the secession of south after the election of 1860 : You must be able to answer questions that relate to the secession of the South after the election of 1860. Who left and why.what were they hoping to gain by leaving the Union. What was the result of their leaving the pnion.How did the Federal gove r..
Correct formula for reactant and product : 1) Determine the correct formula for each reactant and product. 2) Determine the correctly balanced chemical equation.
What is the purpose of partial correlation : When a path diagram is shown, what information is conveyed by the arrows leading from one variable to another?
Determining the naoh solution : What is the molarity of 2.00 L NaOH Solution prepared from the dilution of 50.00 mL of 19.1 M NaOH?
Value of european put option with strike price : A stock with an annual standard deviation of 23 percent currently sells for $73. The risk-free rate is 3.6 percent. Whta is the value of a European put option with a strike price of $75 and 72 days to expiration? (Use 365 days in a year)
Determining the unbalanced equation : If 62.8 g Ca react with 92.3 g HCl according to the reaction below, how many grams of hydrogen gas will be produced, and how many grams of the excess reactant will be left over?
How might an employer use a regression equation : What is a regression equation? How might an employer use a regression equation?
Municipal bonds can be either general obligation bonds : Municipal bonds can be either general obligation bonds or revenue bonds. Of these two types of municipal bonds, only general obligation bonds.
Calculate the amount of work done for the conversion : Calculate the amount of work done for the conversion of 1.00 mole of Ni to Ni(CO)4in the reaction below, at 75oC. Assume that the gases are ideal. The value of R is 8.31 J/molK.

Reviews

Write a Review

Financial Management Questions & Answers

  Require investors have homogeneous expectations

The CAPM does not require investors have homogeneous expectations, but rather that they have:

  What is the bonds yield to maturity

A 15-year, 14% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,075. The bond sells for $1,050. (Assume that the bond has just been issued.) What is the bond's yield to maturity? What is the bond's curr..

  Find the future value of the ordinary annuity

Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.

  Evaluating new pension standards

Evaluating New Pension Standards. In July, 2012, GASB issued two new statements, GASBS Nos. 67 and 68, related to governmental pension reporting. compares and contrasts the old and new standards.

  Buy a seat if the company uses straight voting

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. If Schenkel has 390,000 shares out..

  Project budget to add detached garage to existing home

Develop a project budget to add a detached garage to an existing home. The garage will be 20 feet from the existing home and will be approximately 24’ x 20’. The project duration is 6 weeks. The project budget should include labor costs for different..

  Why were commercial banks prohibited from underwriting

Why were commercial banks prohibited from underwriting corporate securities within the United States but not abroad? How can a depository institution engage in underwriting corporate securities today?

  What is size of world product without international lending

What is the size of World product without international lending.- What is the size of World product with free international lending.

  Comment on the statement of cash flows

Prepare a statement of cash flows for the year ended December 31, 2011.- Comment on the statement of cash flows.

  Present annual yields on similar bonds

A bond with a $1,000 par value has an 8 percent annual coupon rate. It will mature in 4 years, and annual coupon payments are made at the end of each year. Present annual yields on similar bonds are 6 percent. What should be the current price?

  What is the average contribution to net income

What is the average contribution to net income across all four years?- What is the average book value of the investment?

  A firm wishes to maintain an internal growth rate

A firm wishes to maintain an internal growth rate of 9 percent and a dividend payout ratio of 25 percent. The current profit margin is 9 percent, and the firm uses no external financing sources. What must total asset turnover be? Round your answer to..

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd