Question

Assume s= $56.00,Η= .45, r= .05, div= 0.0, on a $55 strike call and 45 days...

Assume s= $56.00,Η= .45, r= .05, div= 0.0, on a $55 strike call and 45 days until expiration. Given delta= .6253,gamma= .0735, and theta=-0.0253, what is the approximate change in call price over 1 day, all else being the same?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Standard deviation is zero as per given in the problems, according to Black scholes Model div =0 will result in same price , call price is also 0 over 1 day. Black school Model is pricing model , used to determine the price variation (call or put options) price calculated using Strike price , options, time.risk free rate etc.

Add a comment
Know the answer?
Add Answer to:
Assume s= $56.00,Η= .45, r= .05, div= 0.0, on a $55 strike call and 45 days...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Write down your analysis of this case on factors like the interests involved, context and power...

    Write down your analysis of this case on factors like the interests involved, context and power PACIFIC OIL COMPANY (A)* "Look, you asked for my advice, and I gave it to you," Frank Kelsey said. "If I were you, I wouldn't make any more concessions! I really don't think you ought to agree to their last demand! But you're the one who has to live with the contract, not me!" Static on the transatlantic telephone connection obscured Jean Fontaine's reply....

  • Write down your analysis of this case on factors like 1. the negotiation process, strategy and...

    Write down your analysis of this case on factors like 1. the negotiation process, strategy and tactics PACIFIC OIL COMPANY (A)* "Look, you asked for my advice, and I gave it to you," Frank Kelsey said. "If I were you, I wouldn't make any more concessions! I really don't think you ought to agree to their last demand! But you're the one who has to live with the contract, not me!" Static on the transatlantic telephone connection obscured Jean Fontaine's...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT