Calculate the price of a call option on a stock

Assignment Help Finance Basics

Reference no: EM131951588

Question: You are to calculate the price of a call option (European) on a stock that does not pay dividends when its price is $52, the exercise price is $50, the annual risk-free interest rate is 12%, the annual volatility is 30%, and there is 3 months left until maturity. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131951588

Questions Cloud

Discuss the potential legal forms that might be required : Discuss at least one of the advantages and one of the disadvantages of that form and potential legal forms that might be required.

Calculate the price of a zero coupon bond : Calculate the price of a zero coupon bond that matures in 17 years if the market interest rate is 3.7 percent.

What are the seven factors that facilitate emergent change : What are the seven factors that facilitate emergent change. Assess your own organization as to which single factor best describes the approach to change.

Construct your models as demonstrated in the notes : . Set up spreadsheet models to calculate total profit for each option. Construct your models as demonstrated in the notes and podcasts.

Calculate the price of a call option on a stock : You are to calculate the price of a call option (European) on a stock that does not pay dividends when its price is $52, the exercise price is $50.

The leaders of the european division of the organization : Many e-commerce companies have entered the market and several enjoy relatively high profit margins, which has lead to immediate financial stability.

Calculate the present value of each of the alternatives : Calculate the present value of each of the alternatives below, if the discount rate is 12%. $45,000 today in one lump sum.

Theory of charisma described as a double-edge sword : Why is the theory of charisma described as a double-edge sword? Please identify a leader that used charisma in a negative manner?

What would the implications for the market policy : In settings where the expansion of the market is so small that a given product or brand cannot reasonably be expected to be provided.

User Account

All Pages