How much does the security cost

Reference no: EM13279158

A price-linked investment pays $300 if the oil price over the next year increases by more than 5%, an event that can happen with a 55% probability. Otherwise, it pays $60. If the expected return on the security is 12%, how much does the security cost?

Reference no: EM13279158

Questions Cloud

What amount of charge is there inside the sphere : It is found that a uniform amount of electrical flux is going through each region of a Gaussian surface shaped like a cube. What amount of charge is there inside the sphere

What would have been the inventories in 2012 : The robinson company had a cost of goods sold of 1,000,000 in 2011 and 1,200,000 in 2012. b. what would have been the inventories in 2012 if the 2011 turnover ratio had been maintained?

Federal civil rights act in the workplace : Which of the following is true regarding Title VII of the federal Civil Rights Act in the workplace?

What are the issues assciated with top-down analysis : what are the issues assciated with top-down analysis please explain?

How much does the security cost : A price-linked investment pays $300 if the oil price over the next year increases by more than 5%, an event that can happen with a 55% probability. Otherwise, it pays $60. If the expected return on the security is 12%, how much does the security c..

Depict a qualitative potential energy diagram : draw a qualitative potential energy diagram for the rotation about the c3-c4 bond in 2,4-dimethylpentane

What is the temperature of the heater : The work done by an engine equals one-half the energy it expels to a cooler at 0C. what is the temperature of the heater

Wheeler operated an automobile service station : Wheeler operated an automobile service station, which he leased from W. C. Cornitius, Inc. The lease ran for three years. Although the lease did not contain any provision for renewal, it was in fact renewed six times for successive threeyear terms. T..

Describe a zero-duration hedging strategy : Describe a zero-duration hedging strategy using only the government bond portfolio and options on U.S. Treasury

User Account

All Pages