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please answer these. Hicrosoft stock is currently trading at $305.00 per share. Assume that the dividend yield is 0 and the annual risk-free rate is
please answer these.
Hicrosoft stock is currently trading at $305.00 per share. Assume that the dividend yield is 0 and the annual risk-free rate is 2%. You calculate the standard deviation of stock returns to be 35\% (0.35). What is the hedge-ratio (the option ) of a 6-month Microsaft call option with a strike price of $310 ? (Wote: Please use the Cumulative Normal Distribution table attached to the formula sheet) 0.3520 0.26 0.6065 07324 If an option is exercised, the short position... has a positive payoff, as the option was exercised. has a negative payoff, and must forfeit the option premium. has a negative payoff, but still keeps the option premium. has a positive payoff, and must forfeit the option premium. Assume that two parties have a short and lorg position to seil and buy 200,000 bushels of corn, respectively, for $10.00 per bushel. The delivery date is $ months from now. Aa Initial margin of 10% is required. Over the next 5 months, the futures price is as follows: What is the value of the short positioe's marein account in month 32 $350,000 5150,000 $50,000 4200,000 Step by Step Solution
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