Explain computation of the value of the portfolio

Assignment Help Basic Statistics

Reference no: EM13153417

During a small time period (say one day), what is the change in the option that you expect if the underlying change $1 dollar? (d) If you made an error of .05 in the computation of your volatility and an error of .01 in the computation of the short interest rate, approximately what error do you expect to make in the computation of the value of the portfolio?

Reference no: EM13153417

Questions Cloud

Optimal solution for this problem : 3000 X1 + 400 X2 = $24,000 Budget X1 - d1+ + d1- = 7 X2 - d2++ d2- = 15 2000 X1 + 1500 X2 - d3+ + d3- = 30,000

Effect on company overall net operating income : Further investigation has revealed that $144,000 of the fixed manufacturing expenses and $93,000 of the fixed selling and administrative expenses are avoidable if product U23N is discontinued. What would be the effect on the company's overall net ..

Intervention of government in market process in u.s : Explain why government regulation is needed, citing the major reasons for government Involvement in a market economy and justify the rationale for the intervention of government in the market process in the U.S.

What is the expected return for the market based on the cap : Gizmo Corp. common stock has a required return of 14.4% and a beta of 1.5. If the expected risk free return is 5%, what is the expected return for the market based on the CAPM?

Explain computation of the value of the portfolio : An error of .01 in the computation of the short interest rate, approximately what error do you expect to make in the computation of the value of the portfolio?

Define oxygen a person consume at every breath : Assume every breath a person took is 0.5L of air, figure out how many grams of Oxygen you consume at every breath. Now assume that you breathe 30 times per second, figure out how long it took for you to consume all the oxygen in a sealed room of 1..

What is the probability that he makes at least two : He is fouled attempting a three-point shot and is awarded three free throws. Assuming each free throw is independent, what is the probability that he makes at least two of the free throws?

Did the flasks that visually had the most dead cells : Did the flasks that visually had the most dead cells in them have significantly more cells stain blue when Trypan Blue was added than the flasks that appeared healthy (The answer is NO).

Managerial significance of the accounting : Prepare the appropriate journal entries for fiscal 2007. Assume the marina operator is unsophisticated in business. Explain the managerial significance of the accounting above to this person.

User Account

All Pages