You have a 91 day 025 year 100 call option on discovery, Finance Basics

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You have a 91 day 025 year 100 call option on discovery

You have a 91 day (=0.25 year) $100 call option on Discovery Cafe. You find that Discovery Cafe is currently trading at $90.00, pays no dividends and, over the past three years, has exhibited a daily annualized price volatility of 40%. Interest rates are currently at 5%.

(1)What is the hedge ratio? how?
(2)What is the probability that the call will expire in the money? how?

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Finance Basics: You have a 91 day 025 year 100 call option on discovery

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Finance Basics: You have a 91 day 025 year 100 call option on discovery

Reference No:- TGS0604534

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: You have a 91 day 025 year 100 call option on discovery

Reference No:- TGS0604534

Recent Questions Asked Finance Basics

Q : A piece of newly purchased industrial equipment costs

Q : Write down the formulas relating a frequency and wavelength

Q : What is the phase relationship between ic and il at is

Q : A 32 kg sloth hangs 32 m above the ground what is the speed

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Q : A man does 4735 j of work in the process of pushing his 270

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