Homework AD 717 Week 11 Problem 1. An investor buys a European style put option. The stock price is $42 […]
Tag: Black Scholes
Calculate the price of a call and a put option with exercise price $10 and 26 weeks to maturity by using Black Scholes.
1- For the following bonds, and given the yield curve, choose a bond which give you a positive change in […]
When a company announces a dividend, the price of the stock drops by the amount of the dividend. What will happen to the price of the option?
1- For the following bonds, and given the yield curve, choose a bond which give you a positive change in […]
A couple of years ago, the Fed announced an increase in interest rates via bond issuance, some traders rushed to buy call options before the news were priced. Why that would be?
1- For the following bonds, and given the yield curve, choose a bond which give you a positive change in […]
