0
   

Upper bound solve homework question please

 
 
Reply Thu 20 Oct, 2016 02:20 am
The question is as follows

Assume six-month forward price of XYZ stock is $58. The stock pays no dividends. The six-month continuously compounded rate of interest is 4%. If the price of a put option is $3 what will be the maximum possible exercise price X that is consistent within no arbitrage context?

I know it is solved with upper bound but i'm quiet stuck help would be appreciated!
  • Topic Stats
  • Top Replies
  • Link to this Topic
Type: Question • Score: 0 • Views: 468 • Replies: 1
No top replies

 
cicerone imposter
 
  1  
Reply Wed 26 Oct, 2016 05:22 pm
@brandon22,
Sorry. That just sounds like Greek to me, but I wish I understood some of that stuff. I'm invested in index funds with Vanguard only since my retirement in 1998. I take out $2k/month (plus my social security), but my investment stays level. It's been that way since my retirement.
0 Replies
 
 

Related Topics

Where is the US economy headed? - Discussion by au1929
Debt consolidation - Question by rogers
Shopping Around For Loans - Question by Brandon9000
What is greed? - Discussion by Robert Gentel
bonds series h - Question by allen russell
Naked Short Selling - Question by optimus cubed
HOW TO GET WEALTHY - Discussion by farmerman
 
  1. Forums
  2. » Upper bound solve homework question please
Copyright © 2017 MadLab, LLC :: Terms of Service :: Privacy Policy :: Page generated in 0.03 seconds on 01/18/2017 at 04:15:55