subject
Business, 02.12.2020 16:50 Sumthin4695

The Dow Jones Industrial Average on July 20, 2016, was 18,580 and the price of a September 185 (European) call option on the index was $3.35. Used the DerivaGem software to calculate the implied volatility of this option. Assume the risk-free rate was 0.7% and the dividend yield was 2.75%. The option expires on September 16, 2016. Estimate the price of a September 185 put option. What is the volatility implied by the price you estimate for this option

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 18:30
Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?
Answers: 1
question
Business, 22.06.2019 19:50
The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.
Answers: 2
question
Business, 23.06.2019 01:30
What is the name of the company and the stock symbol you chose? what is the p/e ratio? what information did you find about the company? why did you choose this stock? company name: stock symbol: p/e ratio: information about the company: why did you choose this stock?
Answers: 2
question
Business, 23.06.2019 02:30
When the price of pencils increases from $1.50 to $2.50, there is an increase in quantity demanded of pens from 100 to 150. the cross-price elasticity of demand between pencils and pens is: ?
Answers: 3
You know the right answer?
The Dow Jones Industrial Average on July 20, 2016, was 18,580 and the price of a September 185 (Euro...
Questions
question
Computers and Technology, 05.05.2020 11:16
question
Mathematics, 05.05.2020 11:16
question
Mathematics, 05.05.2020 11:16
Questions on the website: 13722362