Find options delta as of december 2016

Assignment Help Finance Basics

Reference no: EM133432297

Question: CEO of Company X has 30 million shares of stocks and 30 million shares of options (of Company X). The stock return volatility () is 0.50, dividend yield (d) is 0.0, riskfree rate (r) is 0.05, and maturity (T) is 5 years. Following table shows stock price of Company X during 2016. Date Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Price $15.2 $10.0 $22.7 $25.5 $20.0 $23.0 $18.8 $18.6 $15.5 $18.3 $20.0 $20.4 Suppose that options were granted at-the-money on February 2016.

2-1. Find option's delta (change in one share of option due to $1 increase in stock price) as of December 2016?

2. Find increase in CEO wealth for $1 increase in Company X's stock price as of December 2016?

Reference no: EM133432297

Questions Cloud

Determine documentation requirements for ed reports : The emergency department (ED) chair has asked for a documentation audit of ED records. Your staff conducted the audit, the results of which were very poor.

Story reveal about the civilization : What does the myth/story reveal about the civilization?

How do the costs and returns compare to similar products : How do the costs and returns compare to similar products what are not classified as socially responsible? What type or characteristics of individual investors

What are social determinants of health : What is health equity? What are social determinants of health? Why is addressing the role of social determinants of health important?

Find options delta as of december 2016 : Find options delta (change in one share of option due to $1 increase in stock price) as of December 2016? 2-2. (2 points) Find increase in CEO wealth

Describe the genocide : Describe the genocide that you have chosen and include any alternative names. What was the reaction, if any, from the rest of the world?

Define the national patient safety goals : Define the National Patient Safety Goals (NPSGs) and who follows them. Determine the three different requirements of the Universal Protocol for Surgery

Responsibility for the legal negotiation : Why is it so important for the government to take responsibility for the legal negotiation that took away the identity of Indigenous peoples across Canada

Explain the purpose of the follow three training methods : Explain the purpose of the follow three training methods (one-to-one, workshops, and web-based self-paced) towards (clinicians, administrators, staff)

User Account

All Pages