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please solve it quickly 2. Tesla stock is 830$. Std is 70%, avg yield is 10%. Rf (no risk) is 1% a. Caculate price of
please solve it quickly
2. Tesla stock is 830$. Std is 70%, avg yield is 10%. Rf (no risk) is 1% a. Caculate price of European Put Sell option that will end in 9 months at price of 800$? b. For an investor who holds both the stock and the put option from (a): St Stock Long Put Total value 750 780 800 830 850 900 950 C. The SELL option is traded on market in fair price (you calculated in a). if BUY option that will end at same time (9 months) at same price (800$) costs now 200$. Are there arbitrage opportunities? If yes - show the strategy d. The SELL option is traded on market in fair price (you calculated in a). if BUY option that will end at same time (9 months) at price 750$ costs now 300$. Are there arbitrage opportunities? If yes - show the strategy. e. What would be the price of future forward for 6 months from now at 850$? 2. Tesla stock is 830$. Std is 70%, avg yield is 10%. Rf (no risk) is 1% a. Caculate price of European Put Sell option that will end in 9 months at price of 800$? b. For an investor who holds both the stock and the put option from (a): St Stock Long Put Total value 750 780 800 830 850 900 950 C. The SELL option is traded on market in fair price (you calculated in a). if BUY option that will end at same time (9 months) at same price (800$) costs now 200$. Are there arbitrage opportunities? If yes - show the strategy d. The SELL option is traded on market in fair price (you calculated in a). if BUY option that will end at same time (9 months) at price 750$ costs now 300$. Are there arbitrage opportunities? If yes - show the strategy. e. What would be the price of future forward for 6 months from now at 850$Step by Step Solution
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