Business, 14.11.2019 07:31 23rwilliamson

You wish to buy a euro call option expiring in 6 months with a strike price of $1.35. the volatility of the $/euro exchange rate is expected to be 8.36% on an annualized basis. currently the interest rate on the euro is currently 0.00% whereas it is 1.5% on the dollar. what is the price of this call option? what is corresponding put option worth? what happens to the price of both the call and put option when the volatility goes to 10%. what are the new prices? what happens to the price of both the call and put option as we get closer to the expiration date? what is the new price of the call if no other factors change but we are 3-months away from expiration?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 18:00

Abc company currently pays a dividend of $2.15 per share, d0=2.15. it is estimated that the company’s dividend will grow at a rate of 30 percent per year for the next 3 years, then the dividend will grow at a constant rate of 7 percent thereafter. the market rate of return is 9 percent. what would you estimate is the stock’s current price?

Answers: 3

Answer

Business, 21.06.2019 21:10

Auniversity spent $1.8 million to install solar panels atop a parking garage. these panels will have a capacity of 400 kilowatts (kw) and have a life expectancy of 20 years. suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kwh), and that the marginal cost of electricity production using the solar panels is zero. hint: it may be easier to think of the present value of operating the solar panels for 1 hour per year first. approximately how many hours per year will the solar panels need to operate to enable this project to break even? a. a.3,696.48 b.14,785.92 c.9,241.20 if the solar panels can operate only for 8,317 hours a year at maximum, the project (would/would not)break even?

Answers: 1

Answer

Business, 21.06.2019 23:20

Which feature transfers a slide show into a word-processing document?

Answers: 2

Answer

Business, 22.06.2019 09:30

Any point on a country's production possibilities frontier represents a combination of two goods that an economy:

Answers: 3

Answer

You know the right answer?

You wish to buy a euro call option expiring in 6 months with a strike price of $1.35. the volatility...