According to lognormal distribution with expected price

Assignment Help Financial Management

Reference no: EM131968655

Assume some stock, S, is distributed according to a lognormal distribution with an expected price of 150 and standard deviation equal to 0.40

You are interested in selling a put option with a strike price (X) equal to 120 that expires one year from now. You are unsure about what premium to charge the buyer of the put option. Ending price S =150.

Reference no: EM131968655

Questions Cloud

Define a supply chain and give an example of a supply chain : Define a supply chain and give an example of a supply chain for a manufacturing company? Disadvantage of a corporation partnering with an NGO

Analyze a state-federal or global social welfare policy : For this Assignment, you will analyze a state, federal, or global social welfare policy that affects an at-risk, marginalized, oppressed, under represented.

Determine the area that you believe might be most difficult : Determine the area that you believe might be the most difficult to complete. Justify your response. Then, propose a method to address the difficulties you ident

How has capitalism and the capitalist class changed society : How has capitalism and the capitalist class changed society in ways that set the stage for the next (non-capitalist, or communist) society?

According to lognormal distribution with expected price : Assume some stock, S, is distributed according to a lognormal distribution with an expected price of 150 and standard deviation equal to 0.40

Compute august cash disbursements for manufacturing overhead : The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be

An analysis of a local middle schools nutrition program : You can complete an analysis of a local middle school's nutrition program. Castle Park Middle School's;

Determining the victim died before the fire : You are investigating an arson scene and you find a corpse in the rubble, but you suspect that the victim did not die as a result of the fire.

Compute august cash disbursements for manufacturing overhead : The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be

User Account

All Pages