Estimated price of a call option

Assignment Help Business Management

Reference no: EM13971817

The current price of a XYZ stock is $830. If the 6-month put premium with strike price $830 is 18.00 and interest rates are 3% for 6 months. What is the estimated price of a call option with strike price $830? (There is no dividend during the period.)

(A) $41.13

(B) $42.17

(D) $45.67

Reference no: EM13971817

Questions Cloud

What is the price of the stock today : If the required return is 13 percent, what is the price of the stock today?

Risk-free dollar-denominated return : What risk-free dollar-denominated return can be locked in by investing in the British bills?

Where did you conduct your observation : For this assignment, you are to discreetly observe people for one hour in a busy, public location-such as a shopping mall, park, street corner, train station, cafe, on public transportation, or the Reading Terminal Market-and take note of their no..

What is the current value of mark inc stock : What is the value of Mark Inc operations? If Mark has $10.82 million in debt, what is the current value of Mark Inc stock?

Estimated price of a call option : The current price of a XYZ stock is $830. If the 6-month put premium with strike price $830 is 18.00 and interest rates are 3% for 6 months. What is the estimated price of a call option with strike price $830? (There is no dividend during the peri..

Return compounded monthly in the stock market : You are currently 25 years old and wish to retire at age 65 with $1.5 million dollars. You believe that you will be able to get a 7% rate of return compounded monthly in the stock market by investing in the Wilshire 5000 (VTI).

Computing the implicit stock return : Currently, a firm has a benchmark PE of 18.7 and an EPS of $4.18. Earnings are expected to grow 3.2 percent annually. What is the implicit stock return?

What is the implicit stock return : Currently, a firm has a benchmark PE of 18.7 and an EPS of $4.18. Earnings are expected to grow 3.2 percent annually. What is the implicit stock return?

Evaluate the structure of various markets : Assess the behavior and decisions of individuals and firms for their relation to the microeconomic framework

User Account

All Pages