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: 438 Weeks Ago, 3 Days 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 > Business & Finance Posted 03 Aug 2017 My Price 6.00

Suppose that a stock price is currently $20 and that a call option with an exercise price of $25

Suppose that a stock price is currently $20 and that a call option with an exercise price of $25 is created synthetically using a continually changing position in the stock. Consider the following two scenarios: (a) Stock price increases steadily from $20 to $35 during the life of the option; (b) Stock price oscillates wildly, ending up at $35. Which scenario would make the synthetically created option more expensive? Explain your answer.

 

Answers

Alpha Geek
(8)
Status NEW Posted 03 Aug 2017 03:08 PM My Price 6.00

Sce-----------nar-----------io -----------b w-----------ill----------- ma-----------ke -----------the----------- op-----------tio-----------n m-----------ore----------- ex-----------pen-----------siv-----------e a-----------s d-----------elt-----------a w-----------ill----------- ch-----------ang-----------e m-----------ore----------- un-----------pre-----------dic-----------tab-----------ly -----------and----------- of-----------ten-----------. A-----------t g-----------ive-----------n t-----------ime----------- ho-----------ldi-----------ng -----------of -----------sto-----------ck -----------sho-----------uld----------- be----------- N(-----------d1)----------- . -----------So,-----------

Not Rated(0)