Question 5 - 10 marks (Equity Options) It is January 2nd‚ 2014 and Google Inc. (GOOG) stock is currently trading on the Nasdaq at a price of $1‚105.00 US dollars. Using the information provided below‚ please answer the following questions: (Note: ’Last’ means the last traded price of the put or call option. Use this number for your calculations). Call options: Put options: a) Based on the current stock price‚ which one of the two options is in the money? by how much? (1 marks) b)
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of the call options is $21.5‚ and capped at $39.5. Thus this is a combination of a call option at $21.5 and a put option at $39.5 two options‚ and the value is the difference between the two. Based on the Balck-scholes call formula‚ among which‚ ； 1）The price of call option with the strike price of $21.5: S=$20;K=$21.5;r=5.5%;T-t=0.5yrs;σ=75% 2）The price of put option with the strike price of $39.5: S=$20;K=$39.5;r=5.5%;T-t=0.5yrs;σ=75% The price of the capped calls should
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www.business.unsw.edu.au Australian School of Business School of Banking & Finance FINS3635 OPTIONS‚ FUTURES AND RISK MANAGEMENT TECHNIQUES Session 2‚ 2013 Assignment Due 9 am on October 23‚ 2013 This is a group assignment to be undertaken by no more than 7 students. Group members can be formed from different tutorial classes. You may use Excel for this assignment. Submission: You must upload your assignment on UNSW Blackboard before 9am on 23/10/2013 and hand in a printed copy in the
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price C = Call option P = Put option r = Continuous risk-free interest rate δ = Continuous dividend rate t = Time σ = Volatility (Normal distribution) ∆ = Shares of stock to replicate option B = Amount to borrow to replicate option p∗ = % Chance stock will increase (using r) p = % Chance stock will increase (using α) q = % Chance stock will decrease u = Ratio increase in the price d = Ratio decrease in the price α = Expected rate of return on a stock γ = Expected rate of return on an option C0 = Current
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GRAMMAR COMPETENCE ASSESSMENT OF CALL CENTER AGENTS AS PERCEIVED BY SELECTED BPO SUPERVISORS IN CAVITE: A BASIS FOR AN INTENSIVEENGLISH GRAMMAR TRAINING PROGRAM Undergraduate Thesis Submitted to the Faculty of the College of Economics‚ Management and Development Studies Cavite State University Indang‚Cavite In partial fulfillment of the requirement for the degree Bachelor of Science in Business Management Elger C. Bataller Remevil P. Caguitla April 2015 GRAMMAR
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SOLUTIONS MANUAL CHAPTER 15 PUT AND CALL OPTIONS PROBLEMS Exercise (strike) price 1. A stock has an exercise (strike) price of $40. a. If the stock price goes to $41.50‚ is the exchange likely to add a new strike price? b. If the stock price goes to $42.75 is the exchange likely to add a new strike price? 15-1. a) No. For stocks over $25‚ the normal interval is $5‚ with a new strike price added at the halfway point or $42.50 (between $40 and $45). b) Yes‚ the stock price has equaled or exceeded
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Contents Chapt~ 1 ExJ>ected Utilicy and Risk Aversion ..............................................................................• ! Chapt€11" 2 Mean-Varian.ce Analysis ................................................................................................ 6 Chapter 3 CAPM‚ Atbitmge‚ and Linear Factor Models .............................................................. 12 Chapter 4 Consumption-Savings Decisions and State Pricing............................................
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unlimited risk strategy in options trading that involves selling equal number of out-of-the-money calls and puts of the same underlying security‚ strike price and expiration date while owning the underlying stock. Covered Combination Construction Long 100 Shares Sell 1 OTM Call Sell 1 OTM Put Limited Profit Potential Maximum gain for the covered combination is achieved when the underlying stock price on expiration date is trading at or above the strike price of the call options sold. This is the price
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fraud or misreporting‚ and the evidence has been mixed: One study finds no link between equity based incentives and fraud (Erickson‚ Hanlon & Maydew‚ 2006). Two studies examine the link between misreporting of accounting statements and CEO stock options‚ and find a clear correlation between the two‚ although one of the studies identifies only a limited link. (Burns & Kedia‚ 2006; Efendi‚ Srivastava‚ & Swanson‚ 2007) The final study concludes that the likelihood of fraud increases when executive compensation
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The questions will be indicated by letters‚ (a)‚ (b)‚ etc. Generally‚ each question is worth 1 mark. Please do not hand in a spreadsheet unless explicitly asked to do so. Introduction to the Spreadsheets Puts&Dvd.xls and Call&Dvd.xls NOTE: before opening the spreadsheets Call&Dvd.xls and Puts&Dvd.xls‚ you need to go to Tools‚ Add-Ins‚ and make sure there’s a check mark beside Analysis ToolPak-VBA. Also‚ make sure that there’s a check mark beside Solver. (To do this with Office 2007‚ click on the
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