The writer is very fast, professional and responded to the review request fast also. Thank you.
1. The price of the stock is $37 and interest rates are 8% per annum continuously compounded and there are 2 years to expiration. If the price of the Call with strike of 40 is $9 per share quoted price and the price of the Put with strike of 40 is $7 per share quoted price then
a. Find the quoted per share price of the 40 conversion, correct ot 2 places after the decimal point.
The price is __________
b. Find the quoted per share value of the 40 conversion, correct to 2 places after the decimal point.
The value is _________
c. Find the price of synthetic stock using a strike of 40, correct to 2 places after the decimal point.
The price is ________
d. Would you buy the natural stock or the synthetic stock.
A. Natural B. Synthetic
I need the solution step by step
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more