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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.  

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PLS HELPPP FASTTT!!!! Which of the following is not consistent with the efficient market hypothesis?
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Answer:

c. News has no effect on stock prices.

Explanation:

A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country. For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis which states that, asset (share) prices reflect all information and it is very much impossible to consistently beat the market. Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

According to the efficient market hypothesis, News has an effect on

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The significant event at the conclusion of each phase is called _____. Group of answer choices tasks deliverable milestone seque
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The significant event at the conclusion of each phase is called a milestone.

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