European put on the futures with strike price

Assignment Help Financial Accounting

Reference no: EM13825819

A futures price is currently 55, its volatility is 20% per annum, and the risk-free rate is 6% per annum. What is the value of a 5-month European put on the futures with a strike price of 65?

(Please show all work)

Reference no: EM13825819

Questions Cloud

In terms of the three types of cash flows : In terms of the three types of cash flows, what would be the signs of a healthy and growing company? And what about a matured company?

What are the best-case and worst-case scenarios : You are considering a new product launch. The project will cost $820,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 450 units per year; Based on your experience, you think the unit..

Dodd-frank act has made financial institution stronger : In your opinion, do you think Dodd-Frank Act has made financial institution stronger and safer?

Goals of modern terrorists and terrorist organizations : Describe the goals of modern terrorists and terrorist organizations, as well as the strategies and techniques employed by many terrorist organizations.

European put on the futures with strike price : A futures price is currently 55, its volatility is 20% per annum, and the risk-free rate is 6% per annum. What is the value of a 5-month European put on the futures with a strike price of 65?

The ethical limits in expanding living donor transplantation : the ethical limits in expanding living donor transplantation moral agency

Identify constitutional limitations in criminal cases : Describe and identify the elements of the different categories of offenses such as inchoate crimes, crimes against persons, property, public morality, white-collar and cyber crime.

Explain the steps involved in the valuation process : With examples, explain the steps involved in the valuation process. Which steps will likely be the most difficult and most subjective?

About the relative risk and return of these two stocks : Suppose Stock A offers an expected return of 8.2%, a Beta of .38, a Variance of .036, and a Standard Deviation of 18.9%. Stock B has an expected return of 22.4%, a Beta of 1.67, a Variance of .016, and a standard Deviation of 12.7%. What would you co..

User Account

All Pages