Answer:
D. $0.93
Explanation:
Upmove (U) = High price/current price
= 42/40
= 1.05
Down move (D) = Low price/current price
= 37/40
= 0.925
Risk neutral probability for up move
q = (e^(risk free rate*time)-D)/(U-D)
= (e^(0.02*1)-0.925)/(1.05-0.925)
= 0.76161
Put option payoff at high price (payoff H)
= Max(Strike price-High price,0)
= Max(41-42,0)
= Max(-1,0)
= 0
Put option payoff at low price (Payoff L)
= Max(Strike price-low price,0)
= Max(41-37,0)
= Max(4,0)
= 4
Price of Put option = e^(-r*t)*(q*Payoff H+(1-q)*Payoff L)
= e^(-0.02*1)*(0.761611*0+(1-0.761611)*4)
= 0.93
Therefore, The value of each option using a one-period binomial model is 0.93
Answer:
Which of the following is true if you decide to take the vacation?
(B) The benefits of going on the vacation exceed the benefits you would obtain from the new computer.
Explanation:
The benefits of going on the vacation exceed the benefits you would obtain from the new computer.
The cost of going on the vacation is less than the cost of the computer.
Test of controls is when you test controls surrounding a financial process . Substantive test are performed when one tests assertions surrounding a balance.
Unclear question. I provided some information on national income statistics.
<u>Explanation:</u>
The national income statistics is an economic indicator that tells us the value of goods and services (as in this case in billion of dollars) produced by a country's economy.
Information about the national income statistics of a country is usually published by the World Bank; an internal financial institution.
Answer:
I would say it is A
Explanation:
i say this because everything is virtual now so therefore there are job applications online
