Difference between the final price and the maximum price

Reference no: EM13338146

A Whoey option pays the difference between the final price and the maximum price of a stock over the period of the the option. For example, if the price of a stock is 200, 220, and 234 in the previous periods (here periods 0, 1, and 2), the maximum price is 234, the final price is 234, and the option would pay 234-234=0. If the price path is 200, 220, 200, the maximum price is 220, the final price is 200, and the option would pay 20.

Reference no: EM13338146

Questions Cloud

What is the marginal product of labor for tvs and cars : What is the marginal product of labor for TVs and cars in the home country? what is the no-trade relative price of TVs at Home ?

Write the code to play a number guessing game : Write the code to play a number guessing game. Allow the user to select a lower and upper range to guess between. Ask the user how many guesses they want to guess the number. (Can be accomplished by a text box or a numeric up/down control).

What will be the value of her retirement account : If Carla deposits 2500 a year into her retirement account and have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account

How environmental deprivation, deafness, and neurological : Please explain how environmental deprivation, deafness, and neurological disruption (e.g., stroke or brain injury) might influence language acquisition, production, or comprehension (with example).

Difference between the final price and the maximum price : A Whoey option pays the difference between the final price and the maximum price of a stock over the period of the the option. For example, if the price of a stock is 200, 220, and 234 in the previous periods

What might have caused this change : Yesterday you were consuming 4 eggs and 2 strips of bacon. Today you are consuming 3 eggs and 3 strips of bacon. If you have the same taste what might have caused this change? Are you better or worse off?

How do you suppose the price-earnings ratio of these company : One roommate says that he buys stock only in companies that everyone believes will experience big increases in profits in the future. How do you suppose the price-earnings ratio of these companies compares to the price-earnings ratio of other compani..

Does the merger lead to a higher or a lower cournot : Suppose that P = 400 - 20Q and that there are 3 firms, each with a marginal cost of 30. Suppose that firms 2 and 3 merge. The merger allows the combined firm to lower its marginal cost to 20. Does the merger lead to a higher or a lower cournot equili..

Health expenditures in the u.s. have increased from : Health expenditures in the U.S. have increased from 5% of GDP to 17% of GDP over the past 50 years. List and explain the 3 reasons for this increase.

User Account

All Pages