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| Teaching Since: | Apr 2017 |
| Last Sign in: | 419 Weeks Ago |
| Questions Answered: | 3232 |
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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
1. a. Can the delta of a call option be greater than 1.0? Explain.
b. Can it be less than zero?
c. How does the delta of a call change if the stock price rises?
d. How does it change if the risk of the stock increases?
2. Take another look at our two-step binomial trees for Google, for example . Use the replicating-portfolio or risk-neutral method to value six-month call and put options with an exercise price of $400. Assume the Google stock price is $430.
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