A stock trades at $100 today. In a year it will either be $120 or $30. What is the price of a $90 - strike put today if the risk-free rate is 10% ? Group of answer choices a. 6.06 b. 0.00 c. 60.60 d. 13.33
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- A stock trades at $100 today. In a year it will either be $120 or $30. What is the price of a $90-strike put today if the risk-free rate is 10%? Group of answer choices a. 6.06 b. 0.00 c. 60.60 d. 13.33Suppose a stock is currently trading for $35, and in one period it will either increase to $38 or decrease to $33. If the one-period risk-free rate is 6%, what is the price of a European put option that expires in one period and has an exercise price of $35? $0.51 $2.32 $1.55 $3.00 $0.76I need this question general Accounting
- Given the maturity of an American put option 2 years, riskfree rate 10%, volatility of the stock 40%, current spot price of stock $50, strike price $50, what is the one-step gross rate of stock when it goes up considering a three-step binomial tree? O A. 1.386 O B. 1.105 O C. 0.924 O D. 1.524Solve this question financial accountingConsider a stock with a current price of P $27 Suppose that over the next 6 months the stock price will either go up by a factor of 1.41 or down by a factor of 071. Consider a call option on the stock with a strike price of $25 that expires in 6 months. The nsk-free rate is 6%. (1) Using the binomial model, what are the ending values of the stock price? What are the payoffs of the call option? (2) Suppose you write one call option and buy N shares of stock How many shares must you buy to create a portfolo with a riskless payoff Ge, a hedge portfolio)? What is the payoff of the portfolio? 13)What.is the.present.value of the hedge port- Tolot What &the value of phe calt.option? (4) What s a teplieatirg portfolio What is 2otrage?
- Suppose ABC's stock price is currently $25. In the next six months it will either fall to $15 or rise to $40. What is the current value of a six-month call option with an exercise price of $20? The six-month risk-free interest rate is 5% (periodic rate). [Use the riskneutral valuation method]A. $20.00 B. $8.57 C. $9.52 D. $13.10A stock has a time-t price of s(t). You are given the following values of S(t) S(t) 100 107 102 96 94 110 115 120 108 Consider Asian options that are based on quarterly stock prices over 2 years and matures two years from now. Calculate the payoff of a 100-strike arithmetic average price call. Possible Answers A -8 B t 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2 -6.5 O 6.5 E 81
- Answer? ? Financial accounting questionQuestion 5: A call option on a stock that expires in a year has a strike price of $99. The current stock price is $100 and the one-year risk free interest rate is 10%. The price of this call is $6. a) Is arbitrage possible? What is the arbitrage position? b) do you het this minimum? Find the minimum arbitrage profit for this strategy. WhenAssume that a stock trading for $30 today will be worth either $25 or $35 in two years. A risk-free asset offers an annualized 3% return (continuously compounded) over that time period. • What is the price today of a two-year put option on this stock with a strike price of $32? The maximum error is 0.1. O a. 1.52 O b. 2.47 O c. 1.82 O d. None of these answers O e. 2.07