Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 442 Weeks Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 24 May 2017 My Price 6.00

A stock selling for $25 today will, in 1 year, be worth either $35 or $20

 

A stock selling for $25 today will, in 1 year, be worth either $35 or $20. If the interest rate is 8%, what is the value today of a one-year call option on the stock with exercise price $30? Use the simultaneous equation approach of section 16.2 to price the option.

 

 

 
 

Answers

Alpha Geek
(8)
Status NEW Posted 24 May 2017 11:05 AM My Price 6.00

-----------

Attachments

file 1495624307-Answer.docx preview (275 words )
A----------- st-----------ock----------- se-----------lli-----------ng -----------for----------- $2-----------5 t-----------oda-----------y w-----------ill-----------, i-----------n 1----------- ye-----------ar,----------- be----------- wo-----------rth----------- ei-----------the-----------r $-----------35 -----------or -----------$20-----------. I-----------f t-----------he -----------int-----------ere-----------st -----------rat-----------e i-----------s 8-----------%, -----------wha-----------t i-----------s t-----------he -----------val-----------ue -----------tod-----------ay -----------of -----------a o-----------ne------------yea-----------r c-----------all----------- op-----------tio-----------n o-----------n t-----------he -----------sto-----------ck -----------wit-----------h e-----------xer-----------cis-----------e p-----------ric-----------e $-----------30?----------- Us-----------e t-----------he -----------sim-----------ult-----------ane-----------ous----------- eq-----------uat-----------ion----------- ap-----------pro-----------ach----------- of----------- se-----------cti-----------on -----------16.-----------2 t-----------o p-----------ric-----------e t-----------he -----------opt-----------ion-----------. -----------  ----------- Ap-----------r 0-----------5 2-----------017----------- 12-----------:37----------- PM----------- A-----------nsw-----------er:----------- -----------The----------- st-----------ock----------- is----------- se-----------lli-----------ng -----------for----------- $2-----------5 a-----------nd -----------the----------- st-----------ock----------- wo-----------uld----------- go----------- up----------- ei-----------the-----------r b-----------y 4-----------0% -----------or -----------dow-----------n b-----------y 2-----------0%.----------- Th-----------e i-----------nte-----------res-----------t r-----------ate----------- is----------- 8%----------- an-----------d t-----------he -----------str-----------ike----------- pr-----------ice-----------
Not Rated(0)
Relevent Questions