Mathematics, 10.05.2021 20:20 aseel667789
A stock will pay a dividend D at t = tD < T, where an American-style call option expires at t = This problem values the call option by using binomial trees. Because the dividend has known value, fort to the stock has a non-random component equal the value of dividend, discounted to time t The dividend is paid at tp, and fort t the stock price no longer includes this non-random component. To apply the binomial tree method, we construct a binomial tree for the random component of the stock. Then we construct a binomial tree for the stock S by adding the non-random component to the tree for S Finally we construct the call option values, based upon the binomial tree of stock values by working back from t-T. Let So 86.5 stock price at t 0 K 90 strike price for call option r 0.0175 risk-free interest rate ? 0.21 volatility D- 0.56 value of dividend (dollars) tp 0.125 time dividend is paid (years "ex-date") T 0.166667 expiration time ( years ) M 2number of subintervals of time for binomial trees 0.166667 time increment Let s model the "random part. Then S(t) - De- S(t) 0t
Answers: 1
Mathematics, 21.06.2019 18:00
Suppose you are going to graph the data in the table. minutes temperature (Β°c) 0 -2 1 1 2 3 3 4 4 5 5 -4 6 2 7 -3 what data should be represented on each axis, and what should the axis increments be? x-axis: minutes in increments of 1; y-axis: temperature in increments of 5 x-axis: temperature in increments of 5; y-axis: minutes in increments of 1 x-axis: minutes in increments of 1; y-axis: temperature in increments of 1 x-axis: temperature in increments of 1; y-axis: minutes in increments of 5
Answers: 2
Mathematics, 22.06.2019 03:00
Aboat has a speed of 9 mph in calm water. it takes the boat 4 hours to travel upstream but only 2 hours to travel the same distance downstream. which equation can be used to find c, the speed of the current? 2(9 β c) = 4(9 + c) 9 + c = 4(9 β c) 9 β c = 2(9 + c) 4(9 β c) = 2(9 + c)
Answers: 3
Mathematics, 22.06.2019 04:00
The length of a rectangular plot of land is given by the expression 6x^3y^4. the width of the plot is given by the expression 5x^5y^4z. find an expression to represent the area of the rectangular plot.
Answers: 1
A stock will pay a dividend D at t = tD < T, where an American-style call option expires at t = T...
Mathematics, 27.07.2019 01:00
Chemistry, 27.07.2019 01:00
Social Studies, 27.07.2019 01:00
History, 27.07.2019 01:00
Mathematics, 27.07.2019 01:00
Geography, 27.07.2019 01:00
Mathematics, 27.07.2019 01:00
Spanish, 27.07.2019 01:00
Physics, 27.07.2019 01:00