1) A stock is currently selling for $22.00 per share. Ignoring interest, determine the intrinsic value of a call option should there exist equally probable stock prices of $25.00 and $23.00 A) $0.00 B) $1.00 C) $2.00 D) $3.00 2) Compute for the following call option. The stock is selling for $23.50. The strike price is S25. The possible stoc A) 0.4091 B) 0.6822 C) 0.8433 D) 0.9216 k prices at the end of 6 months are $27.25 and $21.75 3) The stock price in KMW, Inc. is S50, $54, $56, and $48 on four consecutive days of trading. What is the continuously compounded return on the stock over this time frame? A)-3.85 % B)4.00 % C)-4.08 % D)-4.16 % 4) A stock is selling for $32.70. The strike price on a call, maturing in 6 months, is $35. The possible stock prices at the end of 6 months are $39.50 and $28.40. If interest rates are 6.0%, what is the option price? A) $1.90 B) $2.80 C) S3.40 D) $4.20 5) The monthly standard deviation for a stock is 4.2%. What is the 6 month standard deviation for the security? A)4.2 % B) 10.3 % c) 252 % D)50.4 % 6) A stock is selling for $18.50. The strike price on a call, maturing in 6 months, is $20. The possible stock prices at the end of 6 months are $22.50 and S15.00. Interest rates are 6.0%. How much money would you borrow to create an arbitrage on a call trading for $2.00? A) $2.54 B) $4.85 C) $6.60 D) $8.85 7) A stock is selling for $53.20. Interest rates are 6.0% and the returns on the stock have a standard deviation of 24.0%. What is the forecasted up movement in the stock over a 6-month nterval? A) $64.96 B) S69.69 C) S73.48 D) $76.96 8) A stock is selling for $53.20. Interest rates are 6.0% and the returns on the stock have a standard deviation of 24.0%. What is the forecasted up movement in the stock over 6 months. assuming two periods of 3 months each? A) S64.96 B) S69.69 C) $73.48 D) $76.96 Please Show wocking 1) A stock is currently selling for $22.00 per share. Ignoring interest, determine the intrinsic value of a call option should there exist equally probable stock prices of $25.00 and $23.00 A) $0.00 B) $1.00 C) $2.00 D) $3.00 2) Compute for the following call option. The stock is selling for $23.50. The strike price is S25. The possible stoc A) 0.4091 B) 0.6822 C) 0.8433 D) 0.9216 k prices at the end of 6 months are $27.25 and $21.75 3) The stock price in KMW, Inc. is S50, $54, $56, and $48 on four consecutive days of trading. What is the continuously compounded return on the stock over this time frame? A)-3.85 % B)4.00 % C)-4.08 % D)-4.16 % 4) A stock is selling for $32.70. The strike price on a call, maturing in 6 months, is $35. The possible stock prices at the end of 6 months are $39.50 and $28.40. If interest rates are 6.0%, what is the option price? A) $1.90 B) $2.80 C) S3.40 D) $4.20 5) The monthly standard deviation for a stock is 4.2%. What is the 6 month standard deviation for the security? A)4.2 % B) 10.3 % c) 252 % D)50.4 % 6) A stock is selling for $18.50. The strike price on a call, maturing in 6 months, is $20. The possible stock prices at the end of 6 months are $22.50 and S15.00. Interest rates are 6.0%. How much money would you borrow to create an arbitrage on a call trading for $2.00? A) $2.54 B) $4.85 C) $6.60 D) $8.85 7) A stock is selling for $53.20. Interest rates are 6.0% and the returns on the stock have a standard deviation of 24.0%. What is the forecasted up movement in the stock over a 6-month nterval? A) $64.96 B) S69.69 C) S73.48 D) $76.96 8) A stock is selling for $53.20. Interest rates are 6.0% and the returns on the stock have a standard deviation of 24.0%. What is the forecasted up movement in the stock over 6 months. assuming two periods of 3 months each? A) S64.96 B) S69.69 C) $73.48 D) $76.96 Please Show wocking
