What is the instantaneous change in the price of stock

Assignment Help Financial Management
Reference no: EM131868163

Stock A follows a geometric Brownian motion where the drift factor is 0.93 and the variance factor is 0.55. At some particular time t, it is known that dt = 0.035, and dZ(t) = 0.43. At time t, the stock trades for $2354 per share. What is the instantaneous change in the price of stock A?

Reference no: EM131868163

Questions Cloud

What is the price of the bonds : (Bond valuation). 21-year bonds have an annual coupon interest of 8%, What is the price of the bonds?
Which company has the larger market risk : Which company has the larger market risk and which one has the smaller market risk? Briefly explain.
Calculate the default risk premium on nikkig ten-year bonds : NikkiG’s Corporation’s 10-year bonds are currently yielding a return of 6.70 percent. Calculate the default risk premium on NikkiG’s 10-year bonds.
What is the annual dividend yield for this stock : What is the annual dividend yield for this stock? What is the total return (%) for this stock?
What is the instantaneous change in the price of stock : Stock A follows a geometric Brownian motion where the drift factor is 0.93. What is the instantaneous change in the price of stock A?
Debt financing has neutral effect on the equity cash yield : What is the maximum price the investor could pay for the property before debt financing has a neutral effect on the equity cash yield?
What coupon rate should the dairy delight set on its bonds : What coupon rate should The Dairy Delight set on its bonds?
Expected one year treasury yield two years from today : If a 2-year treasury security with a maturity risk premium of 0.1% yields 5.0%, what is the expected 1-year treasury yield two years from today?
Nick accumulated in his retirement account : How much has Nick accumulated in his retirement account?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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