Respuesta :
Your question is incomplete. Please read below for the missing content.
Upmove (U) = High price/current price=30/20=1.5
Down move (D) = Low price/current price=10/20=0.5
Risk neutral probability for up move
q = (e^(risk free rate*time)-D)/(U-D)
=(e^(0.1*0.5)-0.5)/(1.5-0.5)=0.55127
Put option payoff at a high price (payoff H)
=Max(Strike price-High price,0)
=Max(15-30,0)
=Max(-15,0)
=0
Put option payoff at a low price (Payoff L)
=Max(Strike price-low price,0)
=Max(15-10,0)
=Max(5,0)
=5
Price of Put option = e^(-r*t)*(q*Payoff H+(1-q)*Payoff L)
=e^(-0.1*0.5)*(0.551271*0+(1-0.551271)*5)
=2.13
To buy for stocks, you may normally want the help of a stockbroker, since you can not in reality call up an inventory change and ask to buy shares at once. while you use a stockbroker, whether a human being or a web platform, you can pick out the investment that you want to buy or sell and the way the exchange needs to be treated.
Suppose VS's stock price is currently $20. In the next six months, it will either fall to $10 or rise to $30. What is the current value of a put option with an exercise price of $15? The six-month risk-free interest rate is 5% (periodic rate).
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Your question is incomplete. Please read below for the missing content.
Upmove (U) = High price/current price=30/20=1.5
Down move (D) = Low price/current price=10/20=0.5
Risk neutral probability for up move
q = (e^(risk free rate*time)-D)/(U-D)
=(e^(0.1*0.5)-0.5)/(1.5-0.5)=0.55127
Put option payoff at a high price (payoff H)
=Max(Strike price-High price,0)
=Max(15-30,0)
=Max(-15,0)
=0
Put option payoff at a low price (Payoff L)
=Max(Strike price-low price,0)
=Max(15-10,0)
=Max(5,0)
=5
Price of Put option = e^(-r*t)*(q*Payoff H+(1-q)*Payoff L)
=e^(-0.1*0.5)*(0.551271*0+(1-0.551271)*5)
=2.13
To buy stocks, you may normally want the help of a stockbroker, since you can not in reality call up an inventory change and ask to buy shares at once. while you use a stockbroker, whether a human being or a web platform, you can pick out the investment that you want to buy or sell and the way the exchange needs to be treated.
Suppose VS's stock price is currently $20. In the next six months, it will either fall to $10 or rise to $30. What is the current value of a put option with an exercise price of $15? The six-month risk-free interest rate is 5% (periodic rate).
Learn more about Stocks here brainly.com/question/25818989
#SPJ4
