Mathematics, 02.07.2020 01:01 Reward18
The information below shows the results of a lognormal simulation that you have run to value an option on the stock of a publicly traded company: • Current stock price 60 • Expected stock return a = 15% • Stock price volatility o = 30% • Dividend rate 8 = 3% • Time to expiry one year • Strike price 55 • Lognormal parameters m = -1.5% v = 30% Number of Observations 1000 Mean 11.193 Standard Deviation 15.324 Simulated Call Payoff i) What is the simulated option premium? [5 points) ii) What is the 95% confidence interval for your simulated option premium? [3 points) ii) State if the 99% confidence interval for the option would be larger or smaller than the 95% confidence interval, and explain why. [3 points) iv) Your lognormal random variables were generated using uniformly distributed random numbers. Identify two different methods that you could use to improve the accuracy of subsequent simulations and describe how those methods work. [4 points)
Answers: 3
Mathematics, 21.06.2019 15:30
Kevin is an insurance salesman. when he sells a policy, he makes 20 percent of the policy premium (p) up front; then each year the policy is active, he receives 15 percent of the original premium. which equation could be used to figure his total commission on a policy that has been active for five years? c=0.80p c=0.20p + 0.15p c=0.35p + 4(0.15) c=0.95p
Answers: 1
Mathematics, 21.06.2019 22:00
Set $r$ is a set of rectangles such that (1) only the grid points shown here are used as vertices, (2) all sides are vertical or horizontal and (3) no two rectangles in the set are congruent. if $r$ contains the maximum possible number of rectangles given these conditions, what fraction of the rectangles in set $r$ are squares? express your answer as a common fraction.
Answers: 1
Mathematics, 21.06.2019 22:20
Which of the following equations are equivalent to -2m - 5m - 8 = 3 + (-7) + m? -15m = -4m -7m - 8 = m - 4 -3m - 8 = 4 - m m - 4 = -7m - 8 -8 - 7m = -4 + m -8 - 3m = 4 - m
Answers: 1
Mathematics, 22.06.2019 00:30
Will mark ! (10 points also! ) if x varies inversely with y and x =6 when equals y= 10, find y when x=8 a. y=4.8 b. y=7.5 c. y=40/3 d. y=4/15
Answers: 1
The information below shows the results of a lognormal simulation that you have run to value an opti...
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