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Arte-miy333 [17]
4 years ago
11

Consider a European call option on a non-dividend-paying stock where the stock price is $40, the strike price is $40, the risk-f

ree rate is 4% per annum, the volatility is 30% per annum, and the time to maturity is 6 months. (a) Calculate u, d, and p for a two-step tree. (b) Value the option using a two-step tree. (c) Verify that R/RStudio gives the same answer. (d) Use R/RStudio to value the option with 5, 50, 100, and 500 time steps.

Business
1 answer:
Arada [10]4 years ago
6 0

Answer:

See attachment

Explanation:

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A house is closed on October 15. The annual insurance payment is $578 for the fiscal year of July 1 to June 30. The buyers will
Brums [2.3K]

Answer:

$313

Explanation:

In order to divide the insurance bill between the seller and the buyer, we must first determine the insurance cost per month. We first divide the total premium by 12 months = $578 / 12 = $48.17 per month.

The seller is responsible for paying insurance during June, July, August, September and half of October (15 days). So the seller's share of the bill = 5.5 months x $48.17 = $264.92 ≈ $265

So the buyer owes the seller the difference between the total premium paid and $265 = $578 - $265 = $313

5 0
3 years ago
When the government lowers income taxes, consumption is ______________, causing a __________ the ad curve?
xeze [42]
When the government lowers income taxes, consumption is Stimulated, causing a <span>rightward shift of the AD curve.
By lowering income taxes, the government will ensure an increase in average disposable income (part of the income that could be used to buy things). This will stimulate consumption and rightward movement in the Curve.</span>
6 0
4 years ago
Let’s say you’re looking to increase the visibility of your company blog. What, in addition to SEO tactics, could you do to make
zhuklara [117]

Answer:

Addition of backlinks to your Blog

Explanation:

Addition of backlinks to your blog post is one way you can make it easy for people to organically find your previous published pages

Backlinks are links created and added to a webpage that links the website or webpage to another webpage or blog post. this links makes it easier for people navigating through a company's blog to find previously posted articles without having to search them all over again on the menu page.

3 0
4 years ago
Households play a role in the circular flow of goods
Thepotemich [5.8K]
Kahdndidnd jeknlsn jeal
8 0
3 years ago
A stock listing contains the following information:
Brums [2.3K]

Answer:

The correct option is B, I  and III only

Explanation:

The earnings per share can be computed from the P/E ratio pf 17.5

P/E=Price of stock/earnings per share

price of stock  is $33.10

P/E ratio is 17.5

earnings per share is unknown

17.5=33.10/EPS

EPS=33.10/17.5

EPS =1.89

YTD of 3.4% implies that the stock price has grown by 3.4 % in the course of the year.

The previous day closing stock price  of $32.60 cannot be substantiated as more details are required.

Current dividend yield =dividend per share/current stock price

                                       =$0.80/$33.10

                                        =2.4%

The correct option is B,as the first and third comments were correct

7 0
3 years ago
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