Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. suppose a non-dividend paying stock is trading at

Suppose a non-dividend paying stock is trading at $175 per share and has a volatility...

60.1K

Verified Solution

Question

Accounting

Suppose a non-dividend paying stock is trading at $175 per share and has a volatility of 45%. What is the "down rate" (d) equal to if the strike price is $190 per share, the option has a time to maturity of 3 months and there is 1 binomial period? Assume a risk-free rate of 1%. Round to the nearest 0.0001.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Let A be an m × n matrix and B be an m × p...

Advance Math
Q

After living together for a year, Mary, Martha, and Alice have decided to go their separate...

Statistics
Q

you are going to research 2 features of the microcontroller that you have selected in week...

Electrical Engineering
Q

Find the power series expansions for the following functions and specify for which x-values the...

Calculus
Q

Use substitution to evaluate the definite integral given below Enter an exact answer Provide your...

Calculus
Q

Solve the following equation.z/3 - z/4= 48

Algebra
Q

www. Wor Mule TE Com Soyle 11...

Accounting
Q

(TCO 2) As required to complete Course Project 1, one must follow the cycle that...

Accounting
Q

Breanna Co. borrows $110,000 from a bank on January 1, 2023, and will repay the...

Accounting
Q

Johnson and Gomez, Inc. es una pequea empresa dedicada a la produccin y venta de...

Accounting
Q

Professor Wayne Campbell recently lectured on adjusting entries. As he did so, he prepared T-accounts...

Accounting
Q

Problem 3-23(Algo) Calculating Ending Inventories and Cost of Goods Sold [LO3-5] Techuxia Corporation...

Accounting