Calculate the price of call and put option

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1. Calculate the price of a call and put option with exercise price $10 and 2 periods on a stock whose initial price is $13. The stock can go up by 1.1 (u=1.1) or down by 0.8 (d=0.8), the ridk free rate is 0.2% per period.

2. Select 15 ratios to use at year end and give a description and example of each.

3. You own a portfolio that is invested 25 percent in stock A, 40 percent in stock B, and the reminder in stock C. the expected returns on stocks are 8 percent, 16 percent, and 5 percent respectively. what is the expected return on the portfolio?

a. 8.28%

b. 10.15%

c. 12.39%

d. 13.14%

e. 14.58%

Reference no: EM132053249

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