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Consider the information provided below and answer the following questions. In early April 2024, Macquarie Group is trading at $214.02 and you wish to purchase
Consider the information provided below and answer the following questions. In early April 2024, Macquarie Group is trading at $214.02 and you wish to purchase an AMERICAN call on this stock with a strike price of $200 with 2 years to expiry. At the end of the first year, the company is expected to pay a dividend of $18.02 per share. At the end of the second year, the stock is expected to pay a dividend of $18.16. The continuously compounded risk free rate is 4.4102% and the volatility of the stock is 29.50%. Match the number that corresponds to the value required in the question A binomial tree is provided here: Binomial.pdf In percentage terms, what is the proportional move up for this stock A. -0.64 In percentage terms, what is the proportional move down for this stock B. 0.00 In percentage terms, what is the probability that the stock increases in price C. 0.0000 In percentage terms, what is the probability that the stock decreases in price D. 0.54 In dollar terms and to 4 decimal places, what is the value of Su E. 25.55 F. 33.3636 * In dollar terms and to 4 decimal places, what is the value of Su' G. 34.31 In dollar terms and to 4 decimal places, what is the value of Sd H. 45.12 * In dollar terms and to 4 decimal places, what is the value of Sd' 1. 48.50 * In dollar terms and to 2 decimal places, what is the value of Suu' J. 49.78 * In dollar terms and to 2 decimal places, what is the value of Sud' K. 50.22 * In dollar terms and to 2 decimal places, what is the value of Sdu' L. 69.0574 * In dollar terms and to 2 decimal places, what is the value of Sdd' M. 69.4303 In dollar terms and to 2 decimal places, what is the value of fuu N. 87.05 In dollar terms and to 2 decimal places, what is the value of fud O. 112.3849 In dollar terms and to 2 decimal places, what is the value of fdu P. 143.71 In dollar terms and to 2 decimal places, what is the value of fdd Q. 141.3179 R. 159.3379 In dollar terms and to 4 decimal places, what is the value of fu S. 171.64 In dollar terms and to 4 decimal places, what is the value of fd T. 182.43 * In dollar terms and to 4 decimal places, what is the value of fu' (early exercise) U. 269.4303 In dollar terms and to 4 decimal places, what is the value of fd' (early exercise) V. 287.4503 In dollar terms and to 2 decimal places, what is the value of this option W. 343.71 What is the delta of the option X. 0.00 Y. 0.00 Z. 0.0000
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