Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

look at the this question please a) The Moon company currently sells for 100 $. The annual stock price volatility is %10 and risk- free

image text in transcribed
look at the this question please
a) The Moon company currently sells for 100 $. The annual stock price volatility is %10 and risk- free interest rate %8, the price of a call on a companys stock with strike price 200 $ and time period 2 months. Find the stock option price with Black and Scholes Model. If option market value 320 $ what is the option strategy
b) When an investor evaluates a 6-month compound interest of 1.500.000 TL with an interest rate of 15 percent, how much will it be with interest after 4 years?
c) Suppose that a capital of 1000 $ earns 200$ of interest in 4 years. What was the interest rate if compound interest is used? What if simple interest is used?
7. A loan of 20000 at a rate of 5% is paid off in one years, compute the revised payment and create payment table. Table II Cumulative Sundard Normal Distribution -0.09 -0.08 -0.07 -0.06 -0.05 -0.04 -0.03 -0.02 -0.01 -0.00 -39 0.000033 0.000034 0.000036 0.000037 0.000019 0.000041 0.000012 0.000044 0.000046 0.0000 EN -38 0.000050 0.000052 0.000054 0.000037 0.000059 0.000062 0.000064 0.000067 0.000069 0.000072 -27 0.000075 0.000078 0.000082 0.000083 0.000088 0.000092 0.000006 0.000100 0.000104 0.000108 -3.6 0.000112 0.000117 0.000121 0.000126 0.000131 0.000136 0.000142 0.000147 0.000153 0.000159 -35 0.000165 0.000172 0.000179 0.000185 0.000193 0.000200 0.000208 0.000216 0.000224 0.000233 -34 0.000242 0.000251 0.000260 0.000270 0.000280 0.000291 0.000302 0.000313 0.000125 0.000337 -3 0.000350 0.000362 0.000376 0.000190 0.000404 0.000419 0.000434 0.000450 0.000467 0.000183 -3.2 0.000501 0.000519 0.000338 0.000557 0.000577 0.000598 0.000619 0.000641 0.000664 0.000687 -3.1 0.000711 0.000736 0.000762 0.000789 0.000816 0.000843 0.000874 0.000904 0.000935 0.000968 -3.0 0.001001 0.001035 0.001070 0.001107 0.001144 0.001183 0.001223 0.001264 0.001106 0.001350 -29 0.001395 0.001441 0.001489 0.001538 0.001589 0.001641 0.001695 0.001750 0.001807 0.001866 -2.8 0.001926 0.001988 0.002052 0.002118 0.002186 0.002256 0.002327 0.002401 0.002477 0.002555 0.002635 0.002718 0.002803 0.002890 0.002980 0.003072 0.003167 0.003264 0.003364 0.003467 -26 0.001573 0.003681 0.003793 0.003907 0.004025 0.004145 0.004269 0.004396 0.004527 0.004661 0.004799 0.004940 0.0OSORS 0.005214 0.003386 0.005543 0.005703 0.005868 0.006037 0.006210 0.006387 0.006569 0.006756 0.006947 0.007143 0.007344 0.007549 0.007760 0.007976 0.008198 --23 0.003424 0.008656 0.008894 0.009137 0.009387 0.009642 0.009903 0.010170 0.010444 0.010724 -22 0.011011 0.011304 0.011601 0.011911 0.012224 0.012545 0.012874 0.013209 0.013553 0.013903 -2.1 0.014262 0.014629 0.015003 0.015386 0.015778 0.016177 0.016586 0.017003 0.017429 0.017864 - 2.0 0.018309 0.018763 0.019226 0.019699 0.020182 0.020675 0.021178 0.021692 0.022216 0.022750 -1.9 0.023293 0.023852 0.024419 0.02.4998 0.025588 0.026190 0.026803 0.027429 0.028067 0.028717 18 0.029379 0.030054 0.010742 0.031443 0.032157 0.032884 0.033625 0.034379 0.035148 0.035930 -1.7 0.036727 0.037538 003364 0.039204 0.040059 0.000929 0.041815 0.042716 0.043633 0.044565 1.6 0.045514 0.006479 0.047460 0.048457 0.009471 0.0S0S03 0.051551 0.052616 0.053699 0.054799 0.055917 0.057053 0.058205 0.059380 0.060571 0.061780 0.063008 0.064256 0.065522 0.066807 14 0.068112 0.064037 0.070781 0.072145 0.073529 0.074934 0.076359 0.077804 0.079270 0.080757 0.002264 0.083793 0.035 0.086915 0.08850S 0.020123 0.091759 0.091418 0.095098 0.096801 0.098525 0.100273 0.1020120.103835 0.105650 0.107488 0.109349 0.111233 0.113140 0.115070 0.117023 0.119000 0.121001 0.12.3024 0.125072 0.127143 0.129238 0.131357 0.133500 0.135666 10 0.137857 0.140071 0.142310 0.144572 0.146859 0.149170 0.151505 0.151864 0.156248 0.158655 -09 0.161087 0.16354 0.166023 0:168525 0.171056 0.173609 0.176185 0.178786 0.181411 0,184060 -08 0.186733 0.189410 0.192150 0.1994 0.197662 0.200454 0.203269 0.206108 0.208970 0.211855 -0.7 0.214764 0217695 0.220650 0.22627 0.226627 0.229650 0.232695 02357620235852 0.241964 06 0.245097 0.248252 0.251429 0.25-6627 0.257546 0.261086 0.264347 0.267629 0.270931 0.274253 05 0.277595 0.280957 0.254139 0.27740 0.291160 0.294599 0.298056 0.301532 0.305026 0.105538 04 0.312067 0.115614 0.11917 0122758 0.126335 0.3299690.333598 0.337243 0.140903 0.144578 03 0.145263 0.351973 0.355691 0.3594340363169 0.166925 0.370700 0.374484 0.378281 0.32089 -02 0.385908 0.189719 0.193580 0.19702 0.401294 0.405165 0.409046 0.412936 0.416614 0.4207.30 0.1 0.424655 0.428576 0.432505 0436441 04.10382 0.40 0.48283 0,452242 0.4562050460172 0.0 0.466144 0.468119 0.472097 0.476078 0.480061 0.481047 0.488033 0.892022 0.496011 0.500000 7. A loan of 20000 at a rate of 5% is paid off in one years, compute the revised payment and create payment table. Table II Cumulative Sundard Normal Distribution -0.09 -0.08 -0.07 -0.06 -0.05 -0.04 -0.03 -0.02 -0.01 -0.00 -39 0.000033 0.000034 0.000036 0.000037 0.000019 0.000041 0.000012 0.000044 0.000046 0.0000 EN -38 0.000050 0.000052 0.000054 0.000037 0.000059 0.000062 0.000064 0.000067 0.000069 0.000072 -27 0.000075 0.000078 0.000082 0.000083 0.000088 0.000092 0.000006 0.000100 0.000104 0.000108 -3.6 0.000112 0.000117 0.000121 0.000126 0.000131 0.000136 0.000142 0.000147 0.000153 0.000159 -35 0.000165 0.000172 0.000179 0.000185 0.000193 0.000200 0.000208 0.000216 0.000224 0.000233 -34 0.000242 0.000251 0.000260 0.000270 0.000280 0.000291 0.000302 0.000313 0.000125 0.000337 -3 0.000350 0.000362 0.000376 0.000190 0.000404 0.000419 0.000434 0.000450 0.000467 0.000183 -3.2 0.000501 0.000519 0.000338 0.000557 0.000577 0.000598 0.000619 0.000641 0.000664 0.000687 -3.1 0.000711 0.000736 0.000762 0.000789 0.000816 0.000843 0.000874 0.000904 0.000935 0.000968 -3.0 0.001001 0.001035 0.001070 0.001107 0.001144 0.001183 0.001223 0.001264 0.001106 0.001350 -29 0.001395 0.001441 0.001489 0.001538 0.001589 0.001641 0.001695 0.001750 0.001807 0.001866 -2.8 0.001926 0.001988 0.002052 0.002118 0.002186 0.002256 0.002327 0.002401 0.002477 0.002555 0.002635 0.002718 0.002803 0.002890 0.002980 0.003072 0.003167 0.003264 0.003364 0.003467 -26 0.001573 0.003681 0.003793 0.003907 0.004025 0.004145 0.004269 0.004396 0.004527 0.004661 0.004799 0.004940 0.0OSORS 0.005214 0.003386 0.005543 0.005703 0.005868 0.006037 0.006210 0.006387 0.006569 0.006756 0.006947 0.007143 0.007344 0.007549 0.007760 0.007976 0.008198 --23 0.003424 0.008656 0.008894 0.009137 0.009387 0.009642 0.009903 0.010170 0.010444 0.010724 -22 0.011011 0.011304 0.011601 0.011911 0.012224 0.012545 0.012874 0.013209 0.013553 0.013903 -2.1 0.014262 0.014629 0.015003 0.015386 0.015778 0.016177 0.016586 0.017003 0.017429 0.017864 - 2.0 0.018309 0.018763 0.019226 0.019699 0.020182 0.020675 0.021178 0.021692 0.022216 0.022750 -1.9 0.023293 0.023852 0.024419 0.02.4998 0.025588 0.026190 0.026803 0.027429 0.028067 0.028717 18 0.029379 0.030054 0.010742 0.031443 0.032157 0.032884 0.033625 0.034379 0.035148 0.035930 -1.7 0.036727 0.037538 003364 0.039204 0.040059 0.000929 0.041815 0.042716 0.043633 0.044565 1.6 0.045514 0.006479 0.047460 0.048457 0.009471 0.0S0S03 0.051551 0.052616 0.053699 0.054799 0.055917 0.057053 0.058205 0.059380 0.060571 0.061780 0.063008 0.064256 0.065522 0.066807 14 0.068112 0.064037 0.070781 0.072145 0.073529 0.074934 0.076359 0.077804 0.079270 0.080757 0.002264 0.083793 0.035 0.086915 0.08850S 0.020123 0.091759 0.091418 0.095098 0.096801 0.098525 0.100273 0.1020120.103835 0.105650 0.107488 0.109349 0.111233 0.113140 0.115070 0.117023 0.119000 0.121001 0.12.3024 0.125072 0.127143 0.129238 0.131357 0.133500 0.135666 10 0.137857 0.140071 0.142310 0.144572 0.146859 0.149170 0.151505 0.151864 0.156248 0.158655 -09 0.161087 0.16354 0.166023 0:168525 0.171056 0.173609 0.176185 0.178786 0.181411 0,184060 -08 0.186733 0.189410 0.192150 0.1994 0.197662 0.200454 0.203269 0.206108 0.208970 0.211855 -0.7 0.214764 0217695 0.220650 0.22627 0.226627 0.229650 0.232695 02357620235852 0.241964 06 0.245097 0.248252 0.251429 0.25-6627 0.257546 0.261086 0.264347 0.267629 0.270931 0.274253 05 0.277595 0.280957 0.254139 0.27740 0.291160 0.294599 0.298056 0.301532 0.305026 0.105538 04 0.312067 0.115614 0.11917 0122758 0.126335 0.3299690.333598 0.337243 0.140903 0.144578 03 0.145263 0.351973 0.355691 0.3594340363169 0.166925 0.370700 0.374484 0.378281 0.32089 -02 0.385908 0.189719 0.193580 0.19702 0.401294 0.405165 0.409046 0.412936 0.416614 0.4207.30 0.1 0.424655 0.428576 0.432505 0436441 04.10382 0.40 0.48283 0,452242 0.4562050460172 0.0 0.466144 0.468119 0.472097 0.476078 0.480061 0.481047 0.488033 0.892022 0.496011 0.500000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Intelligence An Entrepreneurs Guide Volume 1

Authors: Income Mastery

1st Edition

1647772648, 978-1647772642

More Books

Students also viewed these Finance questions