Question
1. If you have $1,800 today, how much will it be worth in seven years at 5 percent per year compounded continuously? (Do not round
1. If you have $1,800 today, how much will it be worth in seven years at 5 percent per year compounded continuously? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
2.
If you need $37,000 in 12 years, how much will you need to deposit today if you can earn 8 percent per year compounded continuously? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
3.
A stock is currently selling for $80 per share. A call option with an exercise price of $82 sells for $4.00 and expires in three months. |
If the risk-free rate of interest is 2.9 percent per year, compounded continuously, what is the price of a put option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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