Find the price of the put option

Assignment Help Financial Management

Reference no: EM132039268

Please find the price of the put option using the simulated stock prices. The put option matures in 1 year and has exercise price $30. The price of the underlying stock is $30 today. The average annual stock return is 5%. The annualized stock volatility is 15%. The interest rate on the risk-free asset is 5% per year. Please simulate the end of year stock price for 1000 times.

Reference no: EM132039268

Questions Cloud

Find implications of false or misidentification in courtroom : What are the implications of false or misidentification in the courtroom? Discuss if you agree or disagree with eyewitness testimony and whether it should be.

What is the present value of annuity : what is the present value of the annuity?

Considering two mutually exclusive investments : A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:

Discuss about the professionalism and advocacy plan : Before you began your specialization courses, you set goals for your professional development in Professionalism and Advocacy in the Early Childhood Field.

Find the price of the put option : Find the price of the put option using the simulated stock prices.

Halliburton exchanges dollars for yen today : If Halliburton exchanges dollars for yen today and invests the yen in Japan for one year,

Write a case study that identifies several key human factor : Explain how each human factor in the accident may have contributed to another failure that ultimately created an error chain.

Describe three things that affect the firm capital affect : List and describe three (3) things that affect the firm's capital affect.

What are the causes of the disorder : What are the required tests, exams, etc. used to diagnose the disorder? What are the causes of the disorder: genetics, biology, environment, situational, etc.?

User Account

All Pages