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Radda [10]
3 years ago
6

A call option has an exercise price of $70 and matures in six months. The current stock price is $71, and the risk-free rate is

4 percent per year, compounded continuously. What is the price of the call if the standard deviation of the stock is 0 percent per year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
zmey [24]3 years ago
7 0

Answer:

=$0.98

Explanation:

GIVEN DATA:

amount to be matures is $70

current stock price is $71

risk free rate 4%

since standard deviation for stock is given as 0 therefore price os stock is remain same i.e. $71

pay off amount is $71 -$70 = $1

maturity period is of 6 month thus amount of call is calculated as

= 1 \times e^{-0.04 \times 0.5}

= 1\times 0.9801

=$0.98

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Answer:

average total cost per unit is not at its lowest possible cost

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A monopolistic competition is defined as such a market where many different firms or companies sells various differentiated products. Here the firm has some control on the price of the product. It is a market structure of considerably no price competition.

The monopolistic firms are not productive enough because the output is very less than the optimum level of the society as the average total cost of the producer per unit is not at the lowest possible cost.

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When was the International Association of Exhibitions and Events founded?
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Answer:

1928

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hope this help:)) 100% correct

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3 years ago
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In 2010, the number of clown costumes sold at a single costume shop was 17. By 2015, that number had grown to 39. Assuming a con
Leviafan [203]

Answer:

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Explanation

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The market demand curve for a normal good will shift to the left ​(decrease​) when the price of a substitute good ▼ increases de
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1. decreases 
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4. decreases  
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