Below
jenny li
An investor bought a share of Google for $80 on the date of its Initial Public Offering (IPO); simultaneously , he acquired a long put with strike $50 ; a long call with strike $100 and two short calls with strike 120. All options are European options with 1 Year to maturity.
1. Plot the payoffs of a “stock and options” portfolio as a function of the stock price a year after the IPO.
1. Assume that interest rate is 10% and Google’s price volatility is 45%. Calculate the cost of acquiring the “stock and options” portfolio at the IPO date and its payoffs a year after the IPO if Google stock was trading at $400 a year after the IPO. [Use the Option Value calculator]
- 10 years ago
- 20
Answer(0)
Bids(1)
other Questions(10)
- Happy Farms, Inc. ordered 1,000 gallons of a specialty pesticide
- Roel Assignment
- ignorance and unemplyment leads to social evils ?
- Business Challenges 2.2
- Vocational school vs college
- OMM640 week 5
- Need this essay by tonight
- On the course website
- A cell phone company charges $40 per month plus $2 for each minute of time used out of the service...
- i need this work properly cited ........ PLEASE