European call option on the index with same strike price

Assignment Help Financial Management

Reference no: EM131077957

Currently the index is standing at 1,097. The risk-free rate is 4% per annum and the dividend yield is 1% per annum. A 6-month European put option on the index with a strike price of 1000 is trading at $32.04. What must be the value of a 6-month European call option on the index with the same strike price?

Reference no: EM131077957

Questions Cloud

Cost of transporting her household goods-personal effects : At the beginning of 2014, Donna harp was employed as a cinematographer by Farah Movie, Inc., a motion picture company in Los Angeles, California. In June, she accepted a new job with Ocala Production in Orlando, Florida. The cost of transporting her ..

Find the amount of the mortgage and find the down payment : Mary is purchasing a home for 294000$. She will finance her mortgage for 15 years with 4% interest. She is paying 20% down payment of the purchase price. Mary's annual taxes are 2564$ and her annual homeowner insurance is 1778$. Find the amount of th..

Replacement analysis-replacing the wood steamer : The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer, purchased just 2 years ago, is being depreciated on a straight-line basis and has 6 years of remaining life.

Estate planning is designed : The risk free rate of return is often measured by the return on US Treasury Bills. Estate planning is designed to:

European call option on the index with same strike price : Currently the index is standing at 1,097. The risk-free rate is 4% per annum and the dividend yield is 1% per annum. A 6-month European put option on the index with a strike price of 1000 is trading at $32.04. What must be the value of a 6-month Euro..

The overall deductible amount of his itemized deductions : John Davis, a professional dentist, raises horses under circumstances that would indicate that the activity is a hobby. His adjusted gross income for the year is $100,000, and he has $2,000 of other miscellaneous itemized deductions, all of which are..

An all equity firm generates cash flows : An all equity firm generates cash flows (CFFA) of $100 million every year in perpetuity. Based on the risk of the cash flows, a discount rate of 20% is appropriate for the firm. The firm is considering a project that will require an investment of $75..

Balance sheets assets liabilities-equity-accounts payable : Just Dew It Corporation reports the following balance sheet information for 2014 and 2015. JUST DEW IT CORPORATION 2014 and 2015 Balance Sheets Assets Liabilities and Owners’ Equity 2014 2015 2014 2015 Current assets Current liabilities Cash $ 4,350 ..

Trade deficit-floating exchange rate will adjust to reduce : Explain why a stronger dollar could enlarge the U.S. balance of trade deficit. Why could a weaker dollar affect the U.S. balance of trade deficit? It is sometimes suggested that a floating exchange rate will adjust to reduce or eliminate any current ..

User Account

All Pages