Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. ybms stock price s is $102 today. after six month

YBMs stock price S is $102 today. After six months, the stock price can...

80.2K

Verified Solution

Question

Finance

YBMs stock price S is $102 today. After six months, the stock price can either go up to $115.63212672, or go down to $93.52995844. Options mature after T = 6 months and have an exercise price of K = $105. The continuously compounded risk-free interest rate r is 5 percent per year. Given the above data, the hedge ratio and the put options value are given by:

Group of answer choices

0.5190 for the hedge ratio and $5.59 for the put options value

-0.5190 for the hedge ratio and $5.59 for the put options value

0.2523 for the hedge ratio and $4.81 for the put options value

-0.2523 for the hedge ratio and $2.35 for the put options value

please provide explanation

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

what are some factors that a manufacturer should consider when determining whether to test a sample...

Advance Math
Q

Using the data provided in the excel file, show all of your work for the following...

Chemistry
Q

For ALL problems, state hypotheses, in words and symbols and give me everything listed below. Use...

Physics
Q

3. Explain why one side of the single magnet attracted the metal surface, but repelled the...

Physics
Q

A? government-sponsored organization that was established in 1938 after the Depression to provide local banks with...

Basic Math
Q

Which of the following is not a common cause of what we call a model...

Basic Math
Q

Independent random samples of managers yearly salaries in 1 000 taken from governmental and private...

Statistics
Q

1 Define H Z f continuous Find Hint H H 7 a a h t...

Algebra
Q

Part (A) 1. There were 2,500,000 shares outstanding at the beginning of 2019. ...

Accounting
Q

Thank you, I will leave a like! ...

Accounting
Q

Please answer the following question. You can create an excel sheet or a word document...

Accounting
Q

Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and semiannual coupons is trading...

Finance