  (Solution) 13.13. What Is The Price Of A European Call Option On A Non-dividend-paying Stock When The Stock Price Is \$52, The Strike Price Is \$50, The Risk-free... | Snapessays.com

(Solution) 13.13. What is the price of a European call option on a non-dividend-paying stock when the stock price is \$52, the strike price is \$50, the risk-free...

finance problems, please download and look at them.13.13. What is the price of a European call option on a non-dividend-paying

stock when the stock price is \$52, the strike price is \$50, the risk-free interest

rate is 12% per annum, the volatility is 30% per annum, and the time to

maturity is three months?

13.14. What is the price of a European put option on a non-dividend-paying

stock when the stock price is \$69, the strike price is \$70, the risk-free interest

rate is 5% per annum, the volatility is 35% per annum, and the time to

maturity is six months?

13.22. If the volatility of a stock is 18% per annum, estimate the standard

deviation of the percentage price change in (a) one day, (b) one week, and (c)

one month.

13.23. A stock price is currently \$50. Assume that the expected return from

the stock is 18% per annum and its volatility is 30% per annum. What is the

probability distribution for the stock price in two years? Calculate the mean

and standard deviation of the distribution. Determine the 95% confidence

interval.

5

10

15

20

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