The stock price of Ajax Inc. is currently $105. The stock price a year from now will be either $130 or $90 with equal probabilities. The interest rate at which investors can borrow is 10%. Using the binomial OPM, the value of a call option with an exercise price of $110 and an expiration date one year from now should be worth today.
Select one:
a. $11.59
b. $15.00
c. $20.00
d. $40.00
Answers: 2
Another question on Business
Business, 22.06.2019 11:40
On january 1, 2017, sophie's sunlounge owned 4 tanning beds valued at $20,000. during 2017, sophie's bought 3 new beds at a total cost of $14 comma 000, and at the end of the year the market value of all of sophie's beds was $24 comma 000. what was sophie's net investment
Answers: 3
Business, 22.06.2019 21:00
Describe what fixed costs and marginal costs mean to a company.
Answers: 1
Business, 22.06.2019 22:30
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. in this case, the country that produces jeans will produce million pairs per week, and the country that produces corn will produce million bushels per week.
Answers: 1
You know the right answer?
The stock price of Ajax Inc. is currently $105. The stock price a year from now will be either $130...
Questions
Biology, 01.12.2020 06:50
History, 01.12.2020 06:50
Mathematics, 01.12.2020 06:50
Mathematics, 01.12.2020 06:50
Mathematics, 01.12.2020 06:50
Spanish, 01.12.2020 06:50
Mathematics, 01.12.2020 06:50
Mathematics, 01.12.2020 06:50
Mathematics, 01.12.2020 06:50
Mathematics, 01.12.2020 06:50
History, 01.12.2020 06:50
