Question
Please clearly solve the following questions in order. a) When an investor evaluates a 6-month compound interest of 1.500.000 TL with an interest rate of
Please clearly solve the following questions in order.
a) 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?
b) 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?
c) Suppose that an account offers a nominal interest rate of 10 %,what is the effective interest rate? if the nominal interest rate is the same, but interest is payable monthly, weekly and daily?
d) If you pay 5000$ at a rate %10 in five years, by paying five equal installments at the end of the every year. How much is each installment?
e) 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
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