A binary option pays off $100 if a non-dividend-paying stock price is greater than its current value in three months. The risk-free rate is 3% and the volatility is 40%. Which of the following is its value?
A. 99.25N(-0.1375)
B. 99.25N(0.1375)
C. 99.25N(-0.0625)
D. 99.25N(0.0625)
C
You might also like to view...
The World Bank had developed a classification system whereby economies are divided into groups according to their ________
A) purchasing power parity (PPP) B) gross domestic product (GDP) C) human development index (HDI) D) gross national income (GNI)
When Procter & Gamble used Gain and Cheer laundry detergents as outposts to protect a weak front or support a possible counterattack, they were using a ________ defense
A) flank B) position C) preemptive D) counteroffensive E) mobile
The principal can be held liable for any negligence of her agent committed during the time that
the agent has agreed to act as agent. Indicate whether the statement is true or false
Which of the following situations is associated with a non-binding constraint in the solution of the linear programming model?
a. A non-binding constraint always has no slack (slack = 0). b. A non-binding constraint always has slack (slack ? 0). c. A non-binding constraint sometimes has negative slack (slack ? 0). d. None of the above