Answered step by step
Verified Expert Solution
Question
1 Approved Answer
answer both please thanks. thumbs up if correct! Amazon Inc. shares currently sell for 1,885 per share, the company pays no dividend. What is the
answer both please thanks. thumbs up
Amazon Inc. shares currently sell for 1,885 per share, the company pays no dividend. What is the minimum premium you would expect to pay for a 1-month American call option for Amazon with a strike price of 1,790? Assume the risk-free rate, on a continuous compounded basis, is 1% per annum. Pick the closest answer. 00 O 50 O 100 1790 Question 9 1.33 pts Amazon Inc. shares currently sell for 1.885 per share, the company pays no dividend. The 3-month American put option for Amazon with a strike price of 1,790 sell for 118. Assume the risk-free rate, on a continuous compounded basis, is 1% per annum. All else being equal, if market volatility increases you would expect the price of this call to: O Increase Decrease if correct!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started