What dekta makes the portfolio risk free

Assignment Help Biology
Reference no: EM132704795

A stock price is currently $25. It is known that at the end of two months it will be either $23 or $27. The risk-free interest rate is 10% per annum with continuous compounding. Suppose ST is the stock price at the end of two months. The derivative pays offf ST*(ST-S0) at T.

Consider a portfolio consistibg of long delta shares of stock and short 1 unit of derivative.

What dekta makes the portfolio risk free?

A) 100

B) 25

C) 1/25

D) 0.5

Reference no: EM132704795

Questions Cloud

List five barriers to effective communication : List five barriers to effective communication. How can a manager prevent groupthink? What is groupthink? Provide the example
How would you deal with the father anger : Assume you are leading a high school counseling group in which several students disclose they are gay and have not discussed this with their parents for fear.
Explain situation where the laissez-faire style effective : Explain a situation where the laissez-faire style is effective to use. Discuss how you could encourage innovative work practices in your team.
What is the noncontrolling interest share of Rockne income : Sales to Doone amounted to $280,000 in 2017 and $380,000 in 2018. What is the noncontrolling interest's share of Rockne's 2018 income
What dekta makes the portfolio risk free : A stock price is currently $25. It is known that at the end of two months it will be either $23 or $27.
Conduct a job hazard analysis for the complaint : During a safety inspection, you found a large number of complaints of worker's injuries, specifically to fingers due to a new process involving staplers during.
What is the synergy from the merger : Justice bank is analyzing the possible acquisition of Fair insurance. Neither firm has debt. The forecasts of Justice show that the purchase
Define the function of controlling : Define the function of controlling or monitoring and provide some examples to explain your answer. Define the 'laissez-faire' leadership style.
What are the good features of each demo : Visit the website hr-survey. On this site, there are nine different demos. Please pick three different demos and compare and contrast them using the relevant.

Reviews

Write a Review

Biology Questions & Answers

  Why is it important to center the specimen

1. Why is it important to center the specimen before increasing magnification?

  Describe at least three practical scientific and ethical

humans belong to the genus homo and chimpanzees to the genus pan. yet studies of primate genes show that chimpanzees

  Draw the chemical structure of peptide

Calculate the ratio of the protonated/deprotonated species ([HA]/[[A-]) for N-terminal amine, C-terminal acid, and acidic/basic side chain.

  The most ancient branch point in animal phylogeny

The most ancient branch point in animal phylogeny is that between having

  What are the defining features of life

1. What are the defining features of life? 2. Understand the steps involved in evolution by natural selection, as seen in the Darwin's finch example or if presented with a new example.

  Electric field of a point charge

Calculate the magnitude and direction of the electric field at a point P which is 30 cm to the right of a point charge Q = -3.0 x 10-6 C.

  The tissue types of the human body

The human body is a complex structure. Yet, despite its complexity, it consists of only four tissue types; epithelial, connective, muscle, and nervous tissues.

  Define the broad field of anthropology

Define the broad field of anthropology and include an appropraitely formatted citation, Define specific subfield you have been assigned based on your last name and include an appropriately formatted citation for your defintion.

  Animal and bacterial virus multiplication

Discuss the similarities and differences between animal and bacterial virus multiplication.

  What are possible limitations to this study

Pretend you have a grant to create a quasi-experiment to do a program evaluation on a non-profit.

  While looking on an eroded hillside for fossils

While looking on an eroded hillside for fossils, youdiscover coral and fish in one layer. in a layer just above, youfind imprint of a fern frond (leaf) and some fossil moss. assuringthe rock has not been disturbed, which of the following is the mo..

  Discuss some detail set of effector developed by yersinia sp

Discuss in some detail the set of effectors developed by Yersinia sp. To ensure their survival in the human host.

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!

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