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ADM 4354 Study Guide - Quiz Guide: Spot Contract, Straddle, Bull Spread

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School
University of Ottawa
Department
Administration
Course
ADM 4354
Professor
Dodonova

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Document Summary

The following are questions from past adm4351 tests that are relevant to fall 2017. Question 4: if you sold a european call option, your payoff at maturity is equal to: max (x-st, 0, max (st-x, 0, min (x-st, 0, min (st-x, 0, max (x,st) Questions 5-7 are based on the following information: a stock which currently worth. and in 6 month it can worth either or . The risk free interest rate is equal to. You are interested in trading on a 6-month european call option with strike price of. Problem 5: in order to find a price of such option, you"ve decided to construct a risk-free portfolio that consists of a long position in shares and a short position in one call option. Question 6: in order to find a price of such option, you"ve decided to find risk-neutral probability. Question 7: find the price of this option.

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Related Questions

The price of a non-dividend-paying stock is $19 and the price of a three-month European call option on the stock with a strike price of $20 is $1. The risk-free rate is 4% per annum. What is the price of a three-month European put option with a strike price of $20?

Hi I was wondering if someone could help me calculate the PUT value in this question thanks! Hi I was wondering if someone could help me solve this problem? Thanks! The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the continuously compounded risk-free rate (all maturities) is 6% and the time to maturity is one year. What is the price of a one-year European put option on the stock with a strike price of $50?

Hi I was wondering if if someone could help me solve this question? Thanks! The price of a European put option on a stock with a strike price of $50 is $6. The stock price is $51, the continuously compounded risk-free rate (all maturities) is 6% and the time to maturity is one year. A dividend of $1 is expected in six months. What is the price of a one-year European call option on the stock with a strike price of $50?