What is the value of the put option

Assignment Help Finance Basics
Reference no: EM133113183

Stock price: $200

Exercise (Strike) price: $200

The stock price will either rise to $300 or fall to $125 at the end of one year.

Risk free rate: 4% annual

Option life: 6 months

CALL OPTION=$44.24

1. What is the value of the put option, given the above call option value?

Reference no: EM133113183

Questions Cloud

Price of a european put option : The option market does not allow for arbitrage, and the price of stock ZZ is $100. The price of a European put option written on ZZ with a strike of $100 is $10
How do you make sense of spiritual dimensions of wellbeing : How do you make sense of the spiritual dimensions of wellbeing and integrate these understanding in your life, practice or future practice
Deferred sales change : A fund has deferred sales change (DSC) rates as shown in the table below, and Polly had invested 200 units when the NAVPS was $26.44. It is now the 4th year of
Calculate the amount of monthly repayment : CKL Ltd. borrowed $6 million to purchase office space. The loan requires monthly repayments over 17 years. The interest rate of the borrowing was 5.52% per annu
What is the value of the put option : 1. What is the value of the put option, given the above call option value?
Determining the expected growth rate : Company A and Company B are planning to merge. The combined revenue currently is Rs. 20 lacs. Due to economies of scale, the cost of goods sold will reduce from
Find the break even stock price : You purchase nine put option contracts on Silverlake stock at an option premium of $1.40 the strike price is $30 what is your break even stock price
Amazon reflecting the potential of the company : Is the current asset price for Amazon reflecting the potential of the company? Is there any catalysts that will stimulate the asset price in the next 12-18 mont
Clues of upsides and downsides of business : Using Amazon's financial reports: are there major clues of upsides and downsides of its business? (The A/R in DISPAFTBERG).

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the beta of stock b

Your portfolio has a beta of 1.48. The portfolio consists of 15 percent U.S. Treasury bills, 32 percent stock A, and 53 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?

  What is the current share price-synovec co

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 19 percent for the next 3 years, with the growth rate falling off to a constant 3 pe

  Find the portfolio weights-xa and xb

Find the portfolio weights, XA and XB, such that the variance of her portfolio is minimized.

  Calculate the number of order placed per year

i. Calculate the EOQ? ii. Calculate the number of order placed per year? iii. Calculate the average daily demand.

  Calculate the present value

Given the following information, calculate the present value of the following bond that pays semi-annual coupons. Par value: $1,000. Coupon Rate: 8%.

  Expected nonoperating terminal cash flow

Other worst case and best case assumptions from Tate's and Ross's staffs include:

  Outline a cross-platform digital marketing plan

Outline a cross-platform digital marketing plan that provides value and promotes engagement. Your small marketing consulting firm was recently hired by Costa's

  What is anne annual after-tax rate of return

If the bond pays 6.6 percent per year before taxes, what is Anne's annual after-tax rate of return from the bond if the bond matures in one year?

  Discuss enron corporate governance from perspective

What is the governance role of an auditor in a public company? Why might Arthur Anderson have been criticized for their conduct at the time?

  Who are the key participants in financial transactions

In the Financial Market Environment who are the key participants in financial transactions. What are financial institutions and list and discuss the various financial markets.

  Why review the disclosure of nonperforming assets for banks

Utilities are usually verWhy could a review of savings deposit balances be important when reviewing a bank's financial statements?y highly leveraged. How is it that they are able to carry such high levels of debt?

  You will need to review the activity resources and then

you will need to review the activity resources and then research credit risk so you will better understand the benefits

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