What is the value of a nine month european call

Assignment Help Finance Basics
Reference no: EM13265266

A futures price is currently 25, its volatility is 30% per annum, and the risk free interest rate is 10% annum.

What is the value of a nine month European call on the futures with a strike price of 26?

Reference no: EM13265266

Questions Cloud

Determine size of capacitor that must be placed in parallel : A 120 Veff motor draws 1.5 kVA at a lagging power factor of .85. Determine the size of the capacitor that must be placed in parallel with the motor for a power factor of 1.
What is the profit on new sales : The collection cost on these accounts is 4% of new sales, the cost of producing and selling is 79% of sales and the firm is in the 26% tax bracket. What is the profit on new sales?
The advantages of having a common currency as well : Canada, Mexico, and the United States have a free trade zone. What would be some of the advantages of having a common currency as well? The disadvantages? Do you think it would be a good idea? Why or why not?
What is the maximum speed of a point on the string : A wave on a string is described by D(x,t)=(2.00cm)sin[(12.57rad/m)x?(638rad/s)t],where x is in m and t is in s. The linear density of the string is 5.00g/m, What is the maximum speed of a point on the string
What is the value of a nine month european call : What is the value of a nine month European call on the futures with a strike price of 26?
Write argumentative essay about saudi woman : Write argumentative essay about Saudi woman and why some people want her to drive and other do not.
What does delta represent in this setting : What is the delta of this option and what does delta represent in this setting?
Design a buck converter to produce an output voltage : Design a buck converter to produce an output voltage of 18 V across a 10- load resistor. The output voltage ripple must not exceed 0.5 percent. The dc supply is 48 V. Design for continuous inductor current.
What is the value of a six month european call option : What is the value of a six month European call option on the futures with a strike price of 60? If the call were American would it ever be worth excerising it early?

Reviews

Write a Review

Finance Basics Questions & Answers

  Objective type questions on foreign exchange assets

Objective type questions on foreign exchange assets and When a foreign subsidiary is not wholly owned by the parent

  Calculating forward prices

A trader owns gold as part of a long-term investment portfolio. The trader can buy gold for $450 per ounce and sell it for $449 per ounce. The trader can borrow funds at 6% per year and invest funds at 5.5% each year.

  What is its price per share today

After that, the dividend is expected to increase at a constant annual rate of 6%. If the required return on Clare's stock is 16%, what is its price per share today?

  Calculate roel and roeu

Suppose you work for the CEO of a new company that plans to produce and sell a new product, a watch that has an embedded TV set & a magnifying glass crystal.

  Compute the dealer''s expected carry income

Compute the dealer's expected carry income - Based on the above results, is it always good for the dealer when interest rates rise? How about when they fall? Please explain.

  Describe the cause and effect relationship

Describe the cause and effect relationship resulting from the use of air miles as the allocation base. In which of cost pools do you think the cause and effect relationship is the strongest?

  What is its economic value added

Net operating profit after taxes (NOPAT) = $700; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,100. ABC's weighted average cost of capital is 10%. What is i..

  Computation of incremental earnings

Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an 8 store across town from its most successful retail outlet.

  Which manager has the better risk adjusted return

Manager B shows a return of 12% with a standard deviation of 6%. If the risk free rate is 5% which manager has the better risk adjusted return?

  What is your effective annual interest rate on the lending

What is your effective annual interest rate on the lending arrangement if you borrow $37 million immediately and repay it in one year? (Do not round intermediate calculations.

  Write the second scenario similarly

Create two brief written scenarios, one demonstrating your level of learning of compounding and one demonstrating your level of learning of discounting. Attach them as one attachment in the Assignment site for Week Two titled "Compounding & Discou..

  Discuss the benefits of diversification

Discuss the benefits of diversification and explain why would a health care organization need to have a diversified portfolio to be successful? Provide an example to support your argument.

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