User Account

All Pages

Price of a european put option on the stock

Assignment Help Finance Basics
Reference no: EM131101015

When the non-dividend paying stock price is $20, the strike price is $20, the risk-free rate is 5%, the volatility is 20% and the time to maturity is 3 months which of the following is the price of a European put option on the stock

a. 19.7N(-0.1)-20N(-0.2)

b. 20N(-0.1)-20N(-0.2)

c. 19.7N(-0.2)-20N(-0.1)

d. 20N(-0.2)-20N(-0.1)

Reference no: EM131101015

Questions Cloud

Average annual rate of return : You put $10,000 into a retirement plan. After 20 years you had $42,478.50. What is the average annual rate of return you earned on this saving plan?
Explore a stateor localsocial issue : Choose a topic related to a problem you would like to address; ask a question about how to solve the problem. The question must start with the phrase, "What would it take to . . .?"
Franchise payback period-net present value : Calculate each franchise's payback period, net present value (NPV), internal rate of return (IRR), and modified internal rate of return (MIRR).
Written assignment - summary and reflection : Summarize and reflect on what you have learned and how you have or have not acquired the 13 MPH Foundational Competencies in this course. Provide examples from the work you have done in this course as evidence. Discuss how this course has or has n..
Price of a european put option on the stock : When the non-dividend paying stock price is $20, the strike price is $20, the risk-free rate is 5%, the volatility is 20% and the time to maturity is 3 months which of the following is the price of a European put option on the stock
Differentiate between medicare levy : Differentiate between Medicare levy and Medicare levy surcharge. How are the charges determined and are the charges payable by all types of taxpayers?
Concessionary fashion for age pension entitlement : Should employment income be assessed in a concessionary fashion for age pension entitlement purposes to encourage ongoing worker participation? Why?
Investor annual percentage rate of return : Over the past year, the stock has enjoyed a 20 percent return in pound terms, but over the same period, the exchange rate has fallen from $2.00 = £1 to $1.80 = £1. Calculate the investor's annual percentage rate of return in terms of the U.S. doll..
What do we call scientific study of traditional knowledge : What do we call the scientific study of the traditional knowledge and customs of a people concerning plants and their medical, religious, and other uses?

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain the concept of the efficient market hypothesis

What are the fundamental claims of behavioral critique of the Efficient Market Hypothesis (EMH)?

  An internet company earned 650 per share and paid

inferring financial information using a ratio - an internet company earned 6.50 per share and paid dividends of 3.50

  When did the company go public

When did the company go public? Why did the company decide to go public?

  Examine the role of management

Examine the role of management as it relates to finance in a corporation.  In your post, discuss the role of management by addressing the following prompts:

  Should the plant be built

Depreciation will be calculated using the 3-year MACRS rates of 33%, 45%, 15%, and 7% for the first through the fourth year, respectively. Looner Industries%u2019 marginal tax rate is 40%, and its cost of capital is 10%. Should the plant be built?

  Evaluation of long term investment opportunities

As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities.

  Discuss the non-rational factors

Discuss the non-rational factors that may have a role in the valuation of stocks and stock market equilibrium. Provide specific examples to support your response.

  Information obtained in annual reports for coca cola

How do I do break even analysis from information obtained in annual reports for Coca Cola?  Information required by normal formula, such as price and volume as well as in determining fixed cost and variable costs are not available in such reports.

  What is the market value of the corner market

A year ago, you deposited $40000 into a retirement savings account at a fixed rate of 5.5 percent. Today, you could earn a fixed rate of 6.5 percent on a similar type account. However, your rate is fixed and cannot be adjusted. How much less could yo..

  What dollar amount would initially be recorded

The owners of a new venture have decided to organize as a corporation. The initial equity investment is valued at $100,000, reflecting contributions of the entrepreneur and her family and friends. One hundred thousand shares of stock were initiall..

  Computation of value of bond

Computation of value of bond and Ccalculate the expected return on the stock of Mitro Corporation

  Draw a cash flow timeline

Amax Manufacturing Corporation collects $225,000 each day. The cash manager has just been told of a new collection system using lockboxes that could reduce collection float from seven days to six days by decreasing mail and processing float a total o..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd