Assume the Black-Scholes framework for option pricing holds. You are considering buying a stock option. You are given the following information at time t=0: The stock price S(t=0) is $100. The option price is $5.80. The option delta is –0.422. The option theta measured in dollars per year is –$48.253 per year. You decide to buy the option at time t=0 using the www. interactivebrokers electronic trading application. Two days pass and you find that the option price increases to $6.90 while the implied volatility remains constant and the stock price declines to S(t=2) which is less than S(t=0). Using the Delta-Gamma-Theta approximation, compute an estimate for the new stock price S(t=2).

Suppose that the u.s. dollars-mexican pesos exchange rate is fixed by the u.s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs.which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u.s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u.s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u.s. dollars.