Maturity for a stock index with current level

Assignment Help Financial Management

Reference no: EM131545944

Using a 3-step binomial tree, find the value of a American 4000-Put with 12 months to maturity for a stock index with a current level of 3800 with 18% volatility and a 1% dividend payout rate (per year) when the risk free rate is 3% per year.?

Reference no: EM131545944

Questions Cloud

How can income taxation rules possibly result : Amy and John each hold a set of labor preferences and are allocated work accordingly. How can income taxation rules possibly result in Pareto improvements.

What is the ofc-wacc-financial ratio and final analysis : What is the OFC, WACC, Present Value, NPV, Financial Ratio, and final analysis?

What is the difference between outsourcing and offshoring : What is the difference between outsourcing and offshoring? How does the use of each approach affect global value chain management?

Global risks report 2017 : What have been the consequences of government interventions in managing the State of Florida's catastrophe risk, and how may these amplify market problems.

Maturity for a stock index with current level : find the value of a American 4000-Put with 12 months to maturity for a stock index with a current level of 3800 with 18% volatility and 1% dividend payout rate

Describe the selection method you would use to hire : Describe the selection method(s) you would use to hire the best candidate. You must thoroughly explain your decisions for this selection method.

Coupon bond with annual payments : Slan, Inc. Offers a 7 percent coupon bond with annual payments. What is the market price of a $1,000 face value bond?

Define the organizational strategy : Write vision and mission statements for the county health department that provides services to pregnant women.

What are your current exercise habits : What are your current exercise habits?What was the average amount of calories you consumed through food?Are you in energy deficiency, balance, or excess?

User Account

All Pages