1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
balu736 [363]
3 years ago
10

A stock price is currently $40. It is known that at the end of 1 month it will be either $42 or $38. The risk-free interest rate

is 8% per annum with continuous compounding. What is the value of a 1-month European call option with a strike price of $39?

Business
1 answer:
mafiozo [28]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

You might be interested in
Several employees at a fast-food restaurant call in sick at the last minute. The manager tries to fill in but doesn't know how t
VikaD [51]

Answer:  Trained incapacity

Explanation: In simple words, it refers to the idea that after gaining a certain kind of education, skill or experience etc. the level of thinking of an individual cannot go beyond a certain limit.

In the given case, the manager was the upper level employee and was not habitual to the work that was performed by the workers in the restaurant.

Therefore this position in the workplace limited his skills of performing only the managerial work.

Hence from the above we can conclude that the above case depicts trained incapacity.

3 0
3 years ago
What organization is the top-level authority for supervising domain name requests?​?
Jlenok [28]
ICANN is the organization at the top-level authority for supervising domain name requests. ICANN stands for Internet Corporation for Assigned names and Numbers which makes sure that the domain names are safe and maintained well when you look through web pages on the internet. They are a nonprofit organization that coordinates and manages domain requests. 
8 0
3 years ago
Read 2 more answers
Kate enjoys horseback riding and has been wanting a new show saddle for her
Elina [12.6K]
He is very happy his daughter can reach her goal but he wants to make sure she is definitely sure on what she wants to spend the money on
7 0
3 years ago
Read 2 more answers
A daily hassle that can lead to stress is?
Sindrei [870]

Answer:

Explanation:

School

5 0
3 years ago
Read 2 more answers
If the _______ are not valued as a strength, they can lead to low morale, diminished trust, reduced productivity, greater tensio
Leto [7]

Answer:

differences within the project team

Explanation:

There are usually a lot of differences between people in a project team. This makes the team to be more diversified and if these differences are not are not valued as a strength, they can lead to low morale, diminished trust, reduced productivity, greater tension, and suspicion and become a serious impediment to team performance. The team members are from different cultural groups and there may be issues in sharing knowledge, trust and productivity. If such issues are not tackled on time, they may become greater problems for an organization.

8 0
3 years ago
Other questions:
  • Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $302,820, would have a useful life of 7 ye
    6·1 answer
  • A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of merchandise previously purchased on cr
    12·1 answer
  • . The weak form of the EMH states that ________ must be reflected in the current stock price.A. all past information, including
    6·1 answer
  • A company had a beginning balance in retained earnings of $45,000. It had net income of $8,000 and paid out cash dividends of $6
    9·1 answer
  • True or False:If the price of a product goes up by 10% and the quantity demanded goes up by 20% the product is an inferior good.
    12·1 answer
  • [Blank] activities usually appear at the end of your resume and help to depict soft skills such as teamwork and communication th
    8·1 answer
  • Richards Company manufactures a single product. All raw materials used are traceable to specific units of product. Current infor
    9·1 answer
  • Tandoi Furniture started and finished Job 310 during April.The company's records show that the following direct materials were r
    15·1 answer
  • According to the eTextbook, ______ is the lot size (Q) that will minimize total annual inventory cost.
    6·1 answer
  • hich two of the following is are examples of an employee behaving in a way that confirms the theories of elton mayo?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!