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Mathematics, 11.10.2019 01:10 contrerasdaisy100

Suppose cell b10 contains the price of a stock in 5 months. consider a 5 month european call option with an exercise price of $40. the value of the call option in 5 months is $0 if the stock price in 5 months is < =$40. otherwise the value of the call option in 5 months is the stock price in 5 months - 40. how many of the following formulas will yield the correct value of the call option?

• i. if(b10> 40,40-b10,0)
• ii. if(b10> 40, b10-40,0)
• iii. max(b10-40,0)
• iv. min( 0, 40-b10)

(a) i
(b) i and ii
(c) ii and iii
(d) i and iii
(e) iv
(f) i and iv

ansver
Answers: 2

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Suppose cell b10 contains the price of a stock in 5 months. consider a 5 month european call option...
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