The writer is very fast, professional and responded to the review request fast also. Thank you.
. 1.Explain why margin accounts are only required when clients write options but not when they buy options?
. 2.Compare and contrast a bull spread using calls and a bull spread using puts. If you want to include in your explanation a graphical representation of the payouts and/or profits feel free to do so.
. 3.Price a European Call & Put and an American Put on a stock that is currently selling at $25 and has a volatility of 25%. The options all have a life of 7 months and a strike price of $26. The 7-month risk free rate is 3%
per annum with continuous compounding.
a.Use a 9-step binomial tree to price all 3 options
b. Use a 10-step binomial tree to price all 3 options
c.Use the Black-Scholes-Merton formula to price the European options
4.Use the information in question 1, but now the stock will pay a dividend of $1 in 3 months from today. European Call & Put and American Call & Put using a 7-step binomial tree for each option.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more