Find the black-scholes price of a six-month call option

Assignment Help Business Management

Reference no: EM13489906

Find the Black-Scholes price of a six-month call option written on €100,000 with a strike price of $1.00 = €1.00. The current exchange rate is $1.25 = €1.00; The U.S. risk-free rate is 5% over the period and the euro-zone risk-free rate is 4%. The volatility of the underlying asset is 10.7 percent.

Reference no: EM13489906

Questions Cloud

Current incentivisation policy for sales representatives : Outline the general and transactional risks faced by the company from movements in exchange rates and discuss the potential shortcomings, from the perspective of NetW Ltd, of the current incentivisation policy for sales representatives.

Data on the financial behavior : Data on the financial behavior

What is the objects speed at the bottom of the slope : A 50.0 kg object slides down a 30o angle slope from rest at a height of 12.0 m. What is the object's speed at the bottom of the slope

Explain an important regulatory molecule for the urea cycle : N-Acetylglutamic acid is an important regulatory molecule for the urea cycle. Assuming that N-acetylation of the amino group has no effect on the pKa values for the carboxylates, what is the pI for the N-acetylglutamate.

Find the black-scholes price of a six-month call option : Find the Black-Scholes price of a six-month call option written on €100,000 with a strike price of $1.00 = €1.00. The current exchange rate is $1.25 = €1.00; The U.S. risk-free rate is 5% over the period and the euro-zone risk-free rate is 4%. ..

What is the ke energy at the end of the ramp : An inclined plane has a height of 0.383 and is 120 cm long. What is the KE energy at the end of the ramp

Find the magnitude of the angular acceleration of cylinder : Three forces are applied to a solid cylinder of mass 12 kg (see the drawing). The magnitudes of the forces are F1 = 15 N, F2 = 24 N, and F3 = 16 N. Find the magnitude of the angular acceleration of the cylinder

Explain equal moles of hemoglobin and myoglobin : When a solution containing equal moles of hemoglobin and myoglobin is bubbled with a small amount of O2: A. hemoglobin will dissociate into free dimers. B. hemoglobin will dissociate into free monomers.

What impact, positive or negative : 1.What impact, positive or negative, has electronic media had in communicating business-related information?

User Account

All Pages