subject
Business, 01.07.2020 20:01 fatty18

2. The current price of a stock is $50. In 1 year, the price will be either $65 or $35. The annual risk-free rate is 10%. Find the price of a call option on the stock that has an exercise price of $55 and that expires in 1 year. (Hint: Use daily compounding.)

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 00:40
The silverside company is considering investing in two alternative projects: project 1 project 2 investment $500,000 $240,000 useful life (years) 8 7 estimated annual net cash inflows for useful life $120,000 $40,000 residual value $32,000 $10,000 depreciation method straightminusline straightminusline required rate of return 11% 8% what is the accounting rate of return for project 2? (round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, x.xx%.)
Answers: 3
question
Business, 22.06.2019 09:00
Asap describe three different expenses associated with restaurants. choose one of these expenses, and discuss how a manager could handle this expense.
Answers: 1
question
Business, 22.06.2019 12:30
Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented
Answers: 1
question
Business, 22.06.2019 22:40
Which of the following will not cause the consumption schedule to shift? a) a sharp increase in the amount of wealth held by households b) a change in consumer incomes c) the expectation of a recession d) a growing expectation that consumer durables will be in short supply
Answers: 1
You know the right answer?
2. The current price of a stock is $50. In 1 year, the price will be either $65 or $35. The annual r...
Questions
question
Mathematics, 05.05.2020 18:17
question
Biology, 05.05.2020 18:17
question
Mathematics, 05.05.2020 18:17
Questions on the website: 13722361