Thu 12 Nov, 2020 05:39 am - Use Black-Scholes to price a call option with spot price $50, strike price $40, volatility 30%, risk-free rate 5%, and maturity equal to a year. Consider the firm pays $2 as dividends 2 months from... (view)
Thu 12 Nov, 2020 05:32 am - Consider the index SP2 which is made up of firms A and B. The current share price of Firm A is 50 while it is 100 in the case of B. You obtain the following data about at-the-money call options... (view)
Thu 12 Nov, 2020 05:30 am - The current price of LC Corporation stock is $20. In each of the next three years, this stock price can either go up by 12% or go down by 4%. LC stock pays no dividends. The one-year risk-free... (view)
Thu 12 Nov, 2020 05:29 am - The current price of LC Corporation stock is $60. In each of the next two years, this stock price can either go up by 10% or go down by 5%. LC stock pays no dividends. The one-year risk-free... (view)
