Suppose a stock is trading at 80 and has an annualized, Finance Basics

+44 141 628 6080
[email protected]

Suppose a stock is trading at 80 and has an annualized

Suppose a stock is trading at $80 and has an annualized volatility of 0.4. Money may be

borrowed to any tenor at 4% annualized.

(a) What is the Black-Scholes value of such a call struck at 81 maturing in: One hour? Four hours? Two days? A week? A month?

(b) How would you use this to estimate the value of limit orders?

(c)How should this affect the limit order book?

(d)Can you think of reasons why GTC orders exist versus writing options?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Suppose a stock is trading at 80 and has an annualized

Reference No:- TGS01124422

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Investigate the cause of the recent werewolf attacks

create a temporary committee to investigate the cause of the recent werewolf attacks in major cities throughout the United States.

Describe marxist theory and psychology of addiction

Compare the Marxist Theory and Psychology of Addiction with the Realistic Theory and psychology of Addition.

Explain framers decisions in creating the constitution

Explain how the Articles of Confederation made the above scenario possible. Describe how this scenario influenced the framers' decisions in creating the Constit

Federal bureaucracy has to put up with a lot of red tape

Question: The Federal Bureaucracy has to put up with a lot of "red tape". What is "red tape" in regards to government?

What power of recognition when it comes to office president

Question: What is "power of recognition" when it comes to the office of the president? Question Select one

What right ordinance power give to the president

Question: What right does the Ordinance Power give to the president? Question Select one:

Analyze leadership of organization during particular event

Analyze leadership of an organization during a particular event or across a defined set of events. The assignment will assess your ability to identify

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Suppose a stock is trading at 80 and has an annualized

Reference No:- TGS01124422

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Record the current price of the stock for each company you

Q : A certain type of computer costs 500 per unit to build and

Q : A linear programming problem has two constraints x 2y lt

Q : Which of the following is not a condition that must be

Q : Suppose a stock is trading at 80 and has an annualized

Q : Which of the following statements is incorrect regarding

Q : Builtrite auto has preferred stock shares outstanding that

Q : Two corporations a and b have exactly the same risk and

Q : Afc is about to launch its new wings n things fast food