Question
Find the stock price for AMAZON (TICKER:AMZN) for 12/04/2019. Then download price history between 12/03/2018 and 12/04/2019 (You can use finance.yahoo.com and get adjusted closing
Find the stock price for AMAZON (TICKER:AMZN) for 12/04/2019. Then download price history between 12/03/2018 and 12/04/2019 (You can use finance.yahoo.com and get adjusted closing prices).
1.Calculate daily returns, volatility and annualized volatility based on prices you downloaded.
2.Calculate the price of Call option on AMZN that expires on 01/03/2020. Strike price for the option is 1800$. Assume you're calculating price on 12/04/2019. Use 1.50% as your risk-free rate.
3.After you calculated the price based on your assumptions you realized that the option trades at 25$. Calculate the implied volatility for that price using goal seek.
4.Calculate gain/loss for following option strategies and graph the results
a-Call option with 25$ premium and 1850$ Strike price.
b-One AMZN stock and two put options with 40$ premium and 1800$ Strike price
*****PLEASE SHOW CALCULATIONS IN EXCEL***
theres nothing missing. im started to wonder why i pay for this sight because you guys cant answer or are to busy doing others peoples shit
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