| Login | Register | FAQ | Search | Today's Posts | Mark Forums Read |
|
|
|||||||
| |||||||
|
(#1)
|
|
|||
|
Need help FINANCE -
02-02-2007, 12:08 PM
Hey! Im preparing for my exams and Im stuck in one question. Is there any body in here who can help me with the whole procedure? please!
You own a stock with the current market price of 100 kr. At the end of the year the market price will either be 50 or 150. You want to be protected against the low outcome, and buy an option on the stock with one-year expiration date and 100 kr. exercise price. Investors can borrow risk-free at 5% over this period. What is the current value of the option? 
|
|
|
 |
| Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
| Thread Tools | |
|
|
Similar Threads
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| Is it better to buy a car on finance or use it on contract hire? | Leasinoptions | General Discussion | 12 | 11-10-2008 09:31 AM |
| Introducing Star Finance & Credit Ltd | cdfinserve | Introduce yourself | 3 | 24-07-2007 01:12 PM |
| Flexible Finance professional available | FriendlyFD | Introduce yourself | 2 | 22-05-2006 06:51 PM |
