User Account

All Pages

Calculate value of option using black and scholes formula

Assignment Help Accounting Basics
Reference no: EM131627309

Question: HSBC stock trades at £475.8 (Pound sterling) per share. A call option on the stock has a strike price of £490 and an expiration date of six months. The volatility of the stock's return has been 26% in the last year, and the risk-free rate is 1.5%. Calculate the value of the option using the Black and Scholes formula.

Reference no: EM131627309

Questions Cloud

Was it easy to use the leadership style : What leadership style did you use? Was it easy to use the leadership style? Or Hard?
What are the risks and the rewards : What do you think of the use of option straddles as an investment strategy? What are the risks, and what are the rewards?
Evaluate the benefits of each data structure : In this week, you will create a Word document to do following tasks: Evaluate the benefits and disadvantages of each data structure.
Dedicated team approaches to managing projects : What are the relative advantages and disadvantages of the functional, matrix, and dedicated team approaches to managing projects?
Calculate value of option using black and scholes formula : HSBC stock trades at £475.8 (Pound sterling) per share. A call option on the stock has a strike price of £490 and an expiration date of six months.
Explain why unreliable udp works well for streaming audio : Examples of applications that use TCP and UDP. Explain why unreliable UDP works well for streaming audio and video.
Find out the holding period return of dorothy : Dorothy Santosuosso does a lot of investing in the stock market and is a frequent user of stock-index options. She is convinced that the market.
Mini-market franchises : The AM/PM Franchise association was a group of 150 owners of ARCO Mini-Market franchises in Pennsylvania and New York.
Describe the key components of age-banding methodology : Describe the key components of age-banding methodology.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd