What is price of call option with the same exercise price

Assignment Help Financial Management
Reference no: EM131357465

A put option that expires in six months with an exercise price of $35 sells for $4.15. The stock is currently priced at $32, and the risk-free rate is 3.3 percent per year, compounded continuously. What is the price of a call option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call price $

Reference no: EM131357465

Questions Cloud

Find the size of the monthly payments : Joe secured a loan of $15,000 three years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 3%/year compounded monthly on his loan. Now that he has graduated from college, Joe wishes to repay the loan by am..
Paying cash for all the shares outstanding : Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings $ 82,000 $ 15,500 Shares outstanding 39,000 14,000 Per-share values: Market $ 54 $ 19 Book $ 16 $ 9 Assume that Firm X acquires Firm Y by paying cash f..
Evaluating web sources and identifying the audience : Discussion - Overall Rating:"Evaluating Web Sources and Identifying the Audience"  Please respond to the following: Identify three (3) Websites that you plan to use for your research on a paper to convince
Dive into the world of organizational communication : Before we dive into the world of Organizational Communication, let's discuss your thoughts on the role and need of organizing. To be specific, where and what do you communicate and to whom?
What is price of call option with the same exercise price : A put option that expires in six months with an exercise price of $35 sells for $4.15. The stock is currently priced at $32, and the risk-free rate is 3.3 percent per year, compounded continuously. What is the price of a call option with the same exe..
Write a response about the given post : I found that the self-assessments are a useful tool that I can reflect on when applying the Code of Ethics to my everyday life and when working with clients. Like in chapert1 of the self-assessment it appears that different answers were chosen the..
Father of public administration in the us : In one paragraph describe Why is Woodrow Wilson described as the father of Public Administration in the US?
Paragraph why intergovenmental relations : Explain in one paragraph why intergovenmental relations is so complex in the US with issues like illegal immigration?
Describe the paper scope and outline : Describe three (3) major characteristics of your audience (official position, decision-making power, current view on topic, other important characteristic). Describe the paper's scope and outline the major sections

Reviews

Write a Review

 

Financial Management Questions & Answers

  Find the payments on day 90 for swaps

Find the payments on day 90 for swaps 1, 2, and 3. For swap 3, assume that on day 90 stock index 1 is at 5,609.81 and stock index 2 is at 1,231.94. Be sure to indicate the net payment.

  What is the risk reduction of investing in the portfolio

You invest one-third of your wealth in each of three stocks. The expected return and standard deviation of each individual stock is 10 percent and 20 percent, respectively.  What is the expected return of the portfolio? What is the risk reduction of ..

  What is the variance of these returns

Five years ago, you purchased 600 shares of stock. The annual returns have been 7.2 percent, -19.4 percent, 3.8 percent, 14.2 percent, and 27.9 percent, respectively. What is the variance of these returns?

  What is the expected return on the portfolio

Company Z carries a portfolio consisting of two investments, A and B. Its portfolio mix is onethird for Investment A which has an expected return of 18 percent and two-thirds for Investment B with an expected return of 9 percent. What is the expected..

  Within the context of working capital management

A decrease in ________ would increase net working capital. In general, the greater a firm's reliance upon short-term debt or current liabilities, the lower the: Within the context of working capital management:

  What is the initial cash flow-accounts payable increase

Given the following information, what is the initial cash flow? Purchase and install new equipment $9,000 Sale price of old equipment $8,000 Book value of old equipment $6,000 At time of installation: Inventory increase $3,000 Accounts Payable increa..

  What is the value of the bond

Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 7.8%, what is the value of the bond?

  What is the price per share of the companys stock

Ward Corp. is expected to have an EBIT of $2,300,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $173,000, $101,000, and $123,000, respectively. All are expected to grow at 16 percent per year..

  Concerning common stock-investor expected rate of return

You know the following concerning a common stock. Annual rate of growth of: 6% earnings and dividends. Investor's expected rate of return: 10% Should you buy this stock?

  Do you come up with the same conclusion for question

Obtain a 95% confidence interval estimate of p1 - p2. Do you come up with the same conclusion for Question 21? Why or why not?

  Free of material misstatements

What assurance, if any, if there that the financial statements are in compliance with GAAP, and are free of material misstatements?

  The money markets are primarily

The Money Markets are primarily for

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