The current price of a stock is $295 and the annual standard deviation of the rate of return on the stock is 40%. The stock is expected to pay dividends of $1.12 in 1 months and $1.12 in 4 months. A European call option on the stock has a strike price of $280 and expires in 0.5 years. The risk-free rate is 4% (continuously compounded). What should be the price (premium) of the call option?  Report your answer in two decimal places

The current price of a non-dividend-paying stock is $86.78 and the annual standard deviation of the stock’s return is 47%. The risk-free rate is 1.6% (continuously compounded). A European call option on the stock has a strike price of $92 and expires in 1.5 years.   A B 1 Inputs   2 Stock price 86.78 3 Exercise price 92 4 Expiration (years) 1.5 5 St.Dev. of returns 0.47 6 Dividend yield 0 7 Risk-free rate 0.016   What should be the price (premium) of an otherwise identical put option according to put-call parity?  Report your answer in two decimal places

The current price of a non-dividend-paying stock is $62.07 and you expect the stock price to either go up by a factor of 1.153 or down by a factor of 0.881 each period for 2 periods over the next 0.4 years. Each period is 0.2 years long. A European put option on the stock expires in 0.4 years. Its strike price is $62. The risk-free rate is 4% (annual, continuously compounded). What is the value of the option in 0.2 years if the stock price has gone down once? Report your answer in three decimal places

The current price of a non-dividend-paying stock is $238 and the annual standard deviation of the rate of return on the stock is 24%. A European put option on the stock has a strike price of $290 and expires in 0.75 years. The risk-free rate is 2% (continuously compounded). What is N(-d1)? Report your answer in four decimal places

The current price of a non-dividend-paying stock is $202. The risk-free rate is 4.9% (continuously compounded). A European put option on the stock has a strike price of $260, expires in 0.8 years, and costs $64.22.    A B 1 Inputs   2 Stock price 202 3 Exercise price 260 4 Expiration (years) 0.8 5 St. dev. of returns 1 6 Put price 64.22 7 Risk-free rate 0.049   What is the implied volatility? Report your answer in two decimal places

The current price of a non-dividend-paying stock is $62.07 and you expect the stock price to either go up by a factor of 1.153 or down by a factor of 0.881 each period for 2 periods over the next 0.4 years. Each period is 0.2 years long. A European put option on the stock expires in 0.4 years. Its strike price is $62. The risk-free rate is 4% (annual, continuously compounded). What is the option payoff in 0.4 years if the stock price has gone down twice in a row? Report your answer in two decimal places

This diagram shows the steps in mitosis, with labels to reference in the questions below. The phase of mitosis in which the chromosomes condense and centrosomes move to opposite poles of the cell is

You wrote (sold) a put contract with a strike price of $50 and an expiration date in 6 months. The current stock price is $48 and the contract is for 100 shares. What does writing the put option imply?

The current price of a stock is $295 and the annual standard deviation of the rate of return on the stock is 40%. The stock is expected to pay dividends of $1.12 in 1 months and $1.12 in 4 months. A European call option on the stock has a strike price of $280 and expires in 0.5 years. The risk-free rate is 4% (continuously compounded). What is the value of N(d1) in the Black-Scholes formula? Use Excel’s NORM.S.DIST(d1, true) function.? Report your answer in four decimal places

Consider call options on the same stock with the same maturity date. You bought two call options with strike prices of $54 and $90 for $6.09 and $1.69, respectively, and sold two call options with a strike price of $72 for $2.93 each.  What is your profit if the stock price is $63 on the expiration date? Report your answer in two decimal places