What is the price of call option written on google

Reference no: EM13268232

Google (GOOG) is trading for $1,032.95 and has an annual return standard deviation of 20%. Assuming the risk free rate is 3%, what is the price of call option written on Google with a strike price of $1,040 and a time to expiration of 3 months?

Reference no: EM13268232

Questions Cloud

Calculate the average value of the emf induced : A magnetic flux of 400 microwebers passing through a coil of 1200 turns is reversed in 0.1 sec. Calculate the average value of the e.m.f induced in the coil.

What is the expected premium for a put on google : Using Put-Call parity, and the call valued in the first question, what is the expected premium for a put on Google with the same characteristics as the call in the first question?

What is the accuracy in the calculated distance to the plane : A radar system can measure the time delay between the transmitted and reflected wave pulses from a distant airplane with an accuracy of 1.02 picoseconds. What is the accuracy in the calculated distance to the plane

Explain what is the percent purity of the calcium hydroxide : What is the percent purity of the calcium hydroxide if the titration requires 21.42 mL of the acid to reach the endpoint

What is the price of call option written on google : Google (GOOG) is trading for $1,032.95 and has an annual return standard deviation of 20%. Assuming the risk free rate is 3%, what is the price of call option written on Google with a strike price of $1,040 and a time to expiration of 3 months?

Calculate armature voltage va to be applied in steady state : If the motor is driving a load whose torque requirement remains constant at 3Nm, independent of speed. Calculate the armature voltage Va to be applied in steady state, if the load to be driven at 1500RPM.

Explain a sample of an ideal gas has a volume : A sample of an ideal gas has a volume of 3.35 L at 14.40C and 1.50 atm. What is the volume of the gas at 21.60C and 0.987 atm

What is the call option price : Suppose the spot exchange rate is $1.43 per British pound and the strike on a dollar denominated pound call is $1.30. Assume r = 0.045, rf = 0.06, ? = 0.15 and the option expires in 180 days. What is the call option price?

Select a pulse whose magnitude spectrum is constant : A pulse is used to measure the frequency response of a system. Since we expect the frequency response to extend to 20 kHz, we want to select a pulse whose magnitude spectrum is constant within 1% out to 20 kHz.

User Account

All Pages