What is the estimation of the call alternative

Assignment Help Finance Basics

Reference no: EM13911498

consider the accompanying information for a certain offer:

Cost of the stock now = S0 = Rs.80

Activity cost = E = Rs.90

Standard deviation of consistently intensified yearly return = σ = 0.3

Termination time of the call choice = 3 months

Danger free intrigue rate per annum = 8 percent

(i) What is the estimation of the call alternative? Utilize the ordinary circulation table and resort to straight insertion

Reference no: EM13911498

Questions Cloud

Makes its interest payments semiannually : A bond’s market price is $1,150. It has a $1,000 par value, will mature in 14 years, and has a coupon interest rate of 9 percent annual interest, but makes its interest payments semiannually. The bond’s yield to maturity if it matures in 28 years is?

Construct a pro forma income statement : Construct a pro forma income statement for the first year and second year for the following assumptions: In year 2, Price per unit increases to $11.50, and unit of sales increases by 5%, all other assumptions remain the same.

What will be its stock price the stock repurchase : Beta Industries has net income of $1,300,000, and it has 330,000 shares of common stock outstanding. The company's stock currently trades at $44 a share. Beta is considering a plan in which it will use available cash to repurchase 30% of its shares i..

What is the present estimation of lakshmi limited : What is the present estimation of Lakshmi Limited's value, S0, and obligation, B0?

What is the estimation of the call alternative : What is the estimation of the call alternative? Utilize the ordinary circulation table and resort to straight insertion

What is the estimation of a put choice : What is the estimation of a put choice if the time to lapse is 3 months, hazard free rate is 8%, activity cost is Rs.60 and the stock cost is Rs.70?Insight : Use put-call equality hypothesis

What is the estimation of the call alternative : What is the estimation of the call alternative if the danger free rate is 10 percent? Utilize the alternative proportionate strategy,What is the estimation of the call alternative if the danger free rate is 6 percent? Utilize the danger nonpartisan s..

What is the extension for gratefulness in business sector : What is the extension for gratefulness in business sector cost of the three stocks-would they say they are exaggerated or underestimated

What is the normal return and danger of the portfolio : What is the normal return and danger (standard deviation) of the portfolio.What is the extension for gratefulness in business sector cost of the three stocks-would they say they are exaggerated or underestimated?

User Account

All Pages