What is the price of call option written on google

Assignment Help Finance Basics
Reference no: EM13268232

Google (GOOG) is trading for $1,032.95 and has an annual return standard deviation of 20%. Assuming the risk free rate is 3%, what is the price of call option written on Google with a strike price of $1,040 and a time to expiration of 3 months?

Reference no: EM13268232

Questions Cloud

Calculate the average value of the emf induced : A magnetic flux of 400 microwebers passing through a coil of 1200 turns is reversed in 0.1 sec. Calculate the average value of the e.m.f induced in the coil.
What is the expected premium for a put on google : Using Put-Call parity, and the call valued in the first question, what is the expected premium for a put on Google with the same characteristics as the call in the first question?
What is the accuracy in the calculated distance to the plane : A radar system can measure the time delay between the transmitted and reflected wave pulses from a distant airplane with an accuracy of 1.02 picoseconds. What is the accuracy in the calculated distance to the plane
Explain what is the percent purity of the calcium hydroxide : What is the percent purity of the calcium hydroxide if the titration requires 21.42 mL of the acid to reach the endpoint
What is the price of call option written on google : Google (GOOG) is trading for $1,032.95 and has an annual return standard deviation of 20%. Assuming the risk free rate is 3%, what is the price of call option written on Google with a strike price of $1,040 and a time to expiration of 3 months?
Calculate armature voltage va to be applied in steady state : If the motor is driving a load whose torque requirement remains constant at 3Nm, independent of speed. Calculate the armature voltage Va to be applied in steady state, if the load to be driven at 1500RPM.
Explain a sample of an ideal gas has a volume : A sample of an ideal gas has a volume of 3.35 L at 14.40C and 1.50 atm. What is the volume of the gas at 21.60C and 0.987 atm
What is the call option price : Suppose the spot exchange rate is $1.43 per British pound and the strike on a dollar denominated pound call is $1.30. Assume r = 0.045, rf = 0.06, ? = 0.15 and the option expires in 180 days. What is the call option price?
Select a pulse whose magnitude spectrum is constant : A pulse is used to measure the frequency response of a system. Since we expect the frequency response to extend to 20 kHz, we want to select a pulse whose magnitude spectrum is constant within 1% out to 20 kHz.

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the expected rate of return

Demonstrate to your colleagues how you would calculate the expected rate of return,r-hat, also called r-hat, and Beta on a self-designed portfolio of four common stocks selected from the NASDAQ or NYSE stock exchanges. Assume the weighting of the ..

  Corporate acquisitions and losses

Why do firms purchase other corporations? Do firms pay too much for the acquired corporation? Why do so many acquisitions result in shareholder losses?

  Make a cash budget

Of Sharpe's sales 10 percent is for cash, another 60% is collected in the month following sales, and 30% is collected in the second month following sales.

  What is the implied annual rate of interest

1. If you can double your money in 23 years, what is the implied annual rate of interest, given that compounded in quarterly?  2. Assume interest rate of 14%. A company receives cash flows of $576 at the end of year 5, $393 at the end of year 7, and ..

  What growth rate should be used in a stock pricing model

A company has paid the following annual dividends: 0.21, 0.23, 0.24, 0.26, 0.27, 0.29, 0.31, 0.33, 0.36, 0.39, 0.42, 0.48. Based on these historical dividend payments, what growth rate should be used in a stock pricing model?

  What is manor tie ratio

If the company does not maintain a TIE ratio of at least 5 to 1, then its bank will refuse to renew the load and bankruptcy will result. What is Manor's TIE ratio?

  What should the expected ppp

Chase Econometrics has just published projected inflation rates for the United States and Euro-zone for the next five years. U.S. inflation is expected to be 2% per year, and Euro-zone inflation is expected to be 3.5% per year.

  Cash receipts from interest and dividends

Cash receipts from interest and dividends are classified and When equipment is sold for cash, the amount received is reflected as a cash

  What is the interest tax shield

Fleury Co. has a 32 percent tax rate. Its total interest payment for the year just ended was $33.2 million.

  Maximize the market value of common shares

Determine which of the following is the best description of the aim of the financial manger in a corporation where shares are actively traded?

  What is the projects year 0 net cash flow

The project requires an initial investment in net working capital of $285,000 and the fixed asset will have a market value of $225,000 at the end of the project. What is the project's Year 0 net cash flow?

  Do apple inc issue convertible securities

Do Apple Inc issue convertible securities and If so why, if not why not. How about warrants

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