1

Calculate the price of a 9 -month American call option on com futures when the current futures price is 198 cents, the strike price is 200 cents, the risk-free inte...

Question

Calculate the price of a 9 -month American call option on com futures when the current futures price is 198 cents, the strike price is 200 cents, the risk-free interest rate is $8 \%$ per annum, and the volatility is $30 \%$ per annum. Use a binomial tree with a time interval of 3 months.

Calculate the price of a 9 -month American call option on com futures when the current futures price is 198 cents, the strike price is 200 cents, the risk-free interest rate is $8 \%$ per annum, and the volatility is $30 \%$ per annum. Use a binomial tree with a time interval of 3 months.



Answers

Find the present value of each amount.
$$\$ 10,000 \text { if interest is } 6 \% \text { compounded quarterly for } 8$$


Similar Solved Questions

5 answers
386 i0 [ Asupemty (eccros 1 3 conidenca 1 Step 1 1 Inentl IorIne 2 1 costior _ t storld 5 1 1 Scquibor H dran ccnnder-e pocuImDn g aporoximna E}a 1 1 1 aakn 01Ju ELJOU 1 111 0 1 1Pedkex
386 i0 [ Asupemty (eccros 1 3 conidenca 1 Step 1 1 Inentl IorIne 2 1 costior _ t storld 5 1 1 Scquibor H dran ccnnder-e pocuImDn g aporoximna E}a 1 1 1 aakn 01Ju ELJOU 1 1 1 1 0 1 1 Pedkex...
5 answers
MitochondraChloroplastCytoskeletonCell WallFlagellaVacuolesPart III: Analysis Questions: What are the four common parts of all cells? What is the difference between prokaryotic and eukaryotic cells? What are two organelles unique to animal cells? What are two organelles unique to plant cells? Which organelle was the hardest to compare? Why? Which organelle was the easiest to compare? Why?
Mitochondra Chloroplast Cytoskeleton Cell Wall Flagella Vacuoles Part III: Analysis Questions: What are the four common parts of all cells? What is the difference between prokaryotic and eukaryotic cells? What are two organelles unique to animal cells? What are two organelles unique to plant cells? ...
5 answers
0F FI [Differentiate] H Ithel following 5 [ 0 Rrespecteto *
0 F FI [Differentiate] H Ithel following 5 [ 0 Rrespecteto *...
5 answers
Point) The equationty' +y = (24t2 +5t +2)y -3 t > 0The first method that we apply for its solution isNote: You can earn partial credit on this problem.
point) The equation ty' +y = (24t2 +5t +2)y -3 t > 0 The first method that we apply for its solution is Note: You can earn partial credit on this problem....
4 answers
Sketch the region of integration and change the order of integration.9-v? f(z,y) drdy
Sketch the region of integration and change the order of integration. 9-v? f(z,y) drdy...
5 answers
Pick the correct rate equation for the reaction shown below:HO heatA Rate = K[(CH3)C-CBr] [H20]B Rate = k[Rate = KI(CH3)C-CBr][Hzoj2 Rate = Rate K[(CH3)C-CBr]? [H20] D.Rate = k[(CH3)C-CBr]
Pick the correct rate equation for the reaction shown below: HO heat A Rate = K[(CH3)C-CBr] [H20] B Rate = k[Rate = KI(CH3)C-CBr][Hzoj2 Rate = Rate K[(CH3)C-CBr]? [H20] D.Rate = k[(CH3)C-CBr]...
5 answers
Consider the indefinite integral 1l(r) snSr)a_ Find the most appropriate substitution U for the given integral. After making - the substitution find the obtained integral. Then evaluate the Integral ~inl2(Sx) 0 A u= sin(sx) f du; +C~ulI CCos 12(52 B. 1= Co3(5x) , du, +CuLL ~COS 81262 Cu= Cos(5x), 7 du, +Csin" 2(Jx) du; ~CD u= siniSx) ,
Consider the indefinite integral 1l(r) snSr)a_ Find the most appropriate substitution U for the given integral. After making - the substitution find the obtained integral. Then evaluate the Integral ~inl2(Sx) 0 A u= sin(sx) f du; +C ~ulI CCos 12(52 B. 1= Co3(5x) , du, +C uLL ~COS 81262 Cu= Cos(5x), ...
5 answers
(10 points) Does the infinite series Xn_1 sin(nr + 1/n) converge? Explain why O why not.
(10 points) Does the infinite series Xn_1 sin(nr + 1/n) converge? Explain why O why not....
5 answers
Find the value of k>0 so that the plane 2x−2y+z=k is tangentto the sphere x^2+y^2+z^2−160z=0 .
Find the value of k>0 so that the plane 2x−2y+z=k is tangent to the sphere x^2+y^2+z^2−160z=0 ....
5 answers
Judcacuctha (h PJU Of strukctures shonn reptescut sterroisotets constitutional isomners, different conlormstions of tc mulotmation Of = comipound (curd b0m 4xumd ar4me hdercut PTSPectr Yk tui (s taS snkcns Mc exatuple Or sterepisollersHjcH;cOCH; H,CHc~OCH;Rouy Lnt? GroudMonealoum
Judcacuctha (h PJU Of strukctures shonn reptescut sterroisotets constitutional isomners, different conlormstions of tc mulotmation Of = comipound (curd b0m 4xumd ar4me hdercut PTSPectr Yk tui (s taS snkcns Mc exatuple Or sterepisollers Hjc H;c OCH; H,C Hc ~OCH; Rouy Lnt? Groud Monealoum...
5 answers
Assuming In the Aweather balloon U can inflated I W iU the 5 2 volume 3 pressure menke balloon 7nd the mmHg 1 temperature IS and altitude "15.7 temperalurel 5 3
Assuming In the Aweather balloon U can inflated I W iU the 5 2 volume 3 pressure menke balloon 7nd the mmHg 1 temperature IS and altitude "15.7 temperalurel 5 3...
5 answers
What is true about translation? 1. A stop codon in the P site of the ribosome causes a release factor to bind to the stop codon2. RNA polymerase binds to the TATA box of a eukaryote to initiate translation3. The anticodons determine the amino acid sequence of the polypeptide chain4. Amino acids are attached to the 5' end of the tRNA5. the first codon translated is always AUG
What is true about translation? 1. A stop codon in the P site of the ribosome causes a release factor to bind to the stop codon2. RNA polymerase binds to the TATA box of a eukaryote to initiate translation3. The anticodons determine the amino acid sequence of the polypeptide chain4. Amino acids are ...
5 answers
Question 6 Not " yet answeredMarked out of 10.00Flag questionAn electric heater is constructed by applying a potential difference of 151V across a wire with a resistance of 5.0 Q2. What is the power rating of the heater?Select one:A. 4.15B. 4.56C.5.07D. 5.43E. 3.80
Question 6 Not " yet answered Marked out of 10.00 Flag question An electric heater is constructed by applying a potential difference of 151V across a wire with a resistance of 5.0 Q2. What is the power rating of the heater? Select one: A. 4.15 B. 4.56 C.5.07 D. 5.43 E. 3.80...
5 answers
Question 61 ptsHow many quarks are in a deuteron; 2H?
Question 6 1 pts How many quarks are in a deuteron; 2H?...
5 answers
Aqueous nitric acid reacts with iron metal; producing aqueous ironlll) nitrate; nitrous oxide 825 MRCI; @d FIh Which of the following is the correct; balanced chemical reaction for this [email protected] + 3 HNOJu - Fe(NO Nztw : NO W 21,0 MFcu +4HNOJ Fc(NOjJ = 2 NO (2 + H_O mFe t" 44 HNOJud - Fc(NOshbai NO @ * 2 HGOmFc 0 HNOJLal Fc(NOJJud} [email protected] H,O m2 Fct4 + 4 HNOJbol ~ 2 Fc(NOjhiai NOiu+4Hom
Aqueous nitric acid reacts with iron metal; producing aqueous ironlll) nitrate; nitrous oxide 825 MRCI; @d FIh Which of the following is the correct; balanced chemical reaction for this process? [email protected] + 3 HNOJu - Fe(NO Nztw : NO W 21,0 M Fcu +4HNOJ Fc(NOjJ = 2 NO (2 + H_O m Fe t" 44 HNOJud - Fc(...

-- 0.019708--