Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
An error in the assumption of a crucial input can lead to a sizable error in the value of an put or call option. Take an ATM call or put option with S=K=$50, Vol=35%, T=0.5 years, r=6%, dividends=0.
a) A plausible change over a week in the 3 month interest rate is 25bp... or +/- 0.25%. What is the percentage error in the value of that call or put?
b) A plausible error in forecasting the Vol? That can range +/- 5% around the best unbiased forecast you might make (here 35%). Again, compute the percentage error in the resulting put or call value.
c) Redo (a) if the call option was deep in the money ... take it that S=$70. Does the error you'd make w a higher or lower rate become more material?
d) Redo (b) to see the influence of error in the Vol input if the call option was deep OTM, say S=$30. These answers give you a feeling for which input is crucial and in which region.
In what type of market does Lin's operate? What determines the price of fortune cookies? What determines Lin's marginal revenue?
1) Was there a management failure here; if so, what? 2) What is the hotel's immediate response(or action)) to the incident?
Choose two countries that appear to be culturally diverse. Compare the cultures of those countries and then indicate how cultural differences (a) the costs of doing business in each country (b) the likely future economic development of that countr..
What are some characteristics of a health maintenance organization and preferred provider organization?
How has technology helped colleges to make their teaching skills better and to be able to do online courses and more.?
Assume the football team is set up as a general limited liability company (LLC) and that Lenny, Sarah, and Sam are the owners of the LLC and it is a member-managed firm. Which of the following is incorrect?
Discuss the differences between the different input and output devices, and what each one's benefits and limitations are.
Programming PLO-2 Measured: Design, implement, and evaluate computer solutions utilizing structured and object-oriented programming methodologies.
The purpose of the system is to record driver violations and to keep records of the fines paid by drivers when they plead guilty.
What does the term "business ethics" mean? Provide two examples to support your response.
You have been named the nurse manager of the new observation unit in your health care organization.
Identify some recent technological innovations in the marketplace and describe how they have affected consumers' everyday activities.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd