Probability of down move in the price of the future

Assignment Help Financial Management

Reference no: EM131887733

Suppose the return on a futures contract has a standard deviation of 35%, the risk free rate is 5%, the time to maturity is 3 months. Use a two-step binomial tree, the probability of a down move in the price of the future is _____%

Reference no: EM131887733

Questions Cloud

Calculate the irr and npv based on after-tax cash flows : calculate the IRR and NPV based on the after-tax cash flows and discount rate is 8%. What is your assessment?

Differentiate in response to specific stimuli : Give one example, other than mechanical stimuli, that leads to cellular differentiation.

Primary advantages of applying direct write-off method : Based on the information in the video, discuss the primary advantages and disadvantages of applying the direct write-off over the allowance method.

Compare strategic controls and financial controls : Compare and contrast strategic controls and financial controls. Provide specific examples of how each may be used to best serve a corporation.

Probability of down move in the price of the future : Use a two-step binomial tree, the probability of a down move in the price of the future is _____%

Lab pertaining to cell structures and diffusion : How might the information gained from this lab pertaining to cell structures and diffusion be useful to you

Radioactive phosphorus to label bacteriophage : Hershey and Chase used radioactive phosphorus to label bacteriophage. What did the phosphorus label, and where did they find the phosphorus

Research on the organizational structure of dominos : Determine whether the current organizational structure at Domino's is a good match for its corporate strategies.Explain your rationale.

What factors should be considered in selecting a base : What factors should be considered in selecting a base to be used in computing the predetermined overhead rate? Why?

User Account

All Pages