Question
I NEED AN ANSWER QUICK The price of Phillips 66 stock tomorrow will be as described in the below table. You own one share of
I NEED AN ANSWER QUICK
The price of Phillips 66 stock tomorrow will be as described in the below table. You own one share of this stock. You can buy or sell call and put options expiring tomorrow. The call option has a strike price of 81 and sells for 1.12. The put option has a strike price of 79 and sells for 0.74. Once you hedge your position, what will be your percentage standard deviation?
| Stock Price | Probability of Event |
| 76 | 0.18 |
| 78 | 0.2 |
| 80 | 0.22 |
| 83 | 0.24 |
| 85 | 0.16 |
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman
5th Edition
0367335417, 978-0367335410
