What is the implied volatility of the futures price

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Reference no: EM131990142

1. A stock is currently 1,510 with a dividend yield of 2.5%. The annual risk-free rate 4%. If the price of a 12-month American put option with a strike 1,480 is $82.50, what is the implied volatility of the index?

2. You want to have $1.5 million in real dollars in a retirement account when you retire in 40 years. The inflation rate is 2.7% and the nominal rate of return on your investment is 10%. What real amount must you deposit each year in the account to achieve your goal?

3. The price of a futures contract is $19, and the annual risk-free rate 12%. If the price of a five month European put futures option, with strike $20, is $1.64, what is the implied volatility of the futures price?

Reference no: EM131990142

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