What would be formula for pricing

Reference no: EM132790692

Question 1: Use either the call or put option and show how their Greeks have changed since 09/29, specifically, Delta, Theta Gamma, and Rho.

Question 2: You want to design a weather derivative for temperature in Los Angeles California, all you have a pencil and a pen, how would you price it? Hint: ch24 has it all written out.

Question 3: What would be your formula for pricing it? Does not have to be Math symbols, you can do it using words.

Question 4: State your terms and assumptions

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Reference no: EM132790692

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