Find the current fair values and european call

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1. Find the current fair values of a 11.2 month European call and a 11.2 month European put option, using a current stock price of 32.6, strike price of 32.6, volatility of .62, interest rate of 9.2 percent per year, continuously, compounded.  Obtain the current fair values of the following:

1. European call by simulation.

2. European put by simulation.

3. European call by Black-Scholes model.

4. European put by Black-Scholes model.

2. What is the future value of $1,600 in 17 years assuming an interest rate of 10 percent compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Future value            $

Reference no: EM132058256

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