What is the value of a one-year european put option

Assignment Help Business Economics

Reference no: EM13981126

A stock price is currently $100. Over each of the next two six-month periods it is expected to go up by 10% or down by 10%. The risk-free interest rate is 8% per annum with continuous compounding. What is the value of a one-year European put option with a strike price of $100?

Reference no: EM13981126

Questions Cloud

Determine the moment of inertia of a long bar of length : Determine the moment of inertia of a long bar of length "L" rotating about an perpendicular to the bar at (1 / 4) of its length. Give the result in terms of the length of the bar "L" and its mass "M" (ignore the thickness of the bar).

Compute inventory as a percentage of current assets : Based on the information in the financial statements, compute these 2011 values for each company and nventory turnover and Days in inventory.

What types of drugs were legal : Pick 3 drugs that were legal from 1865 until some point in the 20th century, and answer the following questions: What types of drugs were legal, and how were they used in society?

What are the estimated changed in the economic base : You are given the following figures on economic base: primary employment: 10,000; Secondary employment 30,000 A) Determine the ration B) a New Factory engaged in primary employment is moving into the base and intends to employ 250 persons. What are t..

What is the value of a one-year european put option : A stock price is currently $100. Over each of the next two six-month periods it is expected to go up by 10% or down by 10%. The risk-free interest rate is 8% per annum with continuous compounding. What is the value of a one-year European put option w..

To what extent was choose and book a failure : Clarify and describe the problems of the NHS Choose and Book System what management, organization and technology factors were responsible for those problems? To what extent was Choose and Book a failure? Explain your answer. What was the economic and..

What is the force on the hatch door that tends to blow hatch : What is the force (in N) on the hatch door that tends to blow the hatch out of the shuttle? Presume that the hatch door has an area of 2 m2. After you get your answer in Newtons, convert it to pounds.

Discuss several risks associated with sleep deprivation : Why do sleep patterns and duration vary from person to person? What is sleep debt? Can you catch up? Search the internet for an answer to this one. Discuss several risks associated with sleep deprivation. Have you personally experienced any of thes..

Context of the classical full-employment model : Let us assume the advent of the Internet makes the U.S. labor force more productive and efficient. In the context of the Classical Full-Employment Model, graphically trace out and explain the effects in the labor, goods and capital markets. (For simp..

User Account

All Pages