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The current stock price of Johnson & Johnson is $72, and the stock does not pay dividends. The instantaneous risk-free rate of return is 3%.
The current stock price of Johnson \& Johnson is $72, and the stock does not pay dividends. The instantaneous risk-free rate of return is 3%. The instantaneous standard devlation of J\&J's stock is 40%. You want to purchase a put option on this stock with an exercise price of $63 and an expiration date 57 days from now. Using Biack-Scholes, the put option should be worth today. 1.051.1210.0510.41 The stock price of Harper Corp. Is $33 today. The rlsk-free rate of return is 6%, and Harper Corp. pays no dividends. A put option on Harper Corp. stock with an exercise price of $30 and an explration date 73 days from now is worth $.95 today. A call option on Harper Corp. stock with an exercise price of $30 and the same expiration date should be worth today- Multiple Choice $225 $3.14 $3.99 $4.31 On January 1, you sold one Aprll S\&P 500 Index futures contract at a futures price of 1,390. If the April futures price is 1,350 on February 1, your profit would be if you close your position. (The contract multiplier is 250 .) Multiple Choice $10,000 $12,500 $12.500 $10,000
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