NOTE: ASSUME Ris free rate of 0; 252 trading days in a year; and Normal distribution for all questions. Delta and Gamma with back ratio spread Underlying trading at 6000. You want to have a position of 100 CALL front ratio spread using CALL options with seven weeks before expiration. In particular, you want to Long 200 contracts of 35 delta CALL Short 300 contracts of 25 delta CALL Annual IV for both legs is 1000. a. Identify the strike for 35 delta and 25 delta CALL respectively b. What is the delta for your overall call front ratio position? c. What is the gamma and theta value of your front ratio position?

Assume that Epping Co. expects to receive S$500,000 in one year. Epping created a probability distribution for the future spot rate in one year as follows: Future Spot Rate $.68 Probability 20% 62 50 30 61 Assume that one-year put options on Singapore dollars premium of $.04 per unit. One-year call options on Singapore dollars are available with an exercise price of S.60 and a premium of $.03 per unit. a are available, with an exercise price of $0.63 and Use the appropriate options hedge to determine whether the firm would exercise the option using each of the three different spot rates i.e. what would the firm do if each spot rate existed at the time it is considering exercising the option (assume the option is about to expire). Then, show the total amount of receivables (in US dollars) based on the appropriate strategy that would be implemented for each of the three spot rates. Indicate whether the amount would be a maximum or a minimum or neither.

Assume the following: LC Exposure = 10,000; Spot Rate = $1.00/LC1.00; 1 Year Forward = $0.98/LC1.00; 1 Year Strike Price = $0.975; Premium = $0.005; and WACC = 8.0% p.a. Please calculate the cost of the forward contract and the option.

Assume that the strike price is $100. The time to maturity T is 2 months. Risk free rate is 0.1, U=1.21, D=0.82 price the European and American binary calls if the spot price differs from the strike price by 0.01 using the 2 step binomial tree. Use monthly compounding.

1. Given an American call option and knowing that S(0) = 19$, X = 20$, r = 10%, T- 5 months, CE = 1.50$, find the interval in which PA can be. =

Hi expert please give me answer general accounting

The 1-year spot rate is 8%p.a. effective. The term structure of 1-year effective forwardratesisasfollows: attimet=1therateis7%,attimet=2therate is 6%, at time t = 3 the rate is 5%. (a)  Determine the term structure of spot rates. (b)  A fixed income security pays £10 annual coupons and it is redeemed after 4 years for £100. Compute its price at time t = 0.

a. Calculate the intrinsic value for each of the following call options. (Round your answers to 2 decimal places.) Company RJay RJay Sell-Mart Xenon Time to Expiration (months) RJay RJay Sell-Mart Xenon 1 2 Time to Company Expiration (months) 5 6 LO Strike 1 2 5 6 60 70 60 7.50 b. Now assume that the effective annual interest rate is 7.18%, which corresponds to a monthly interest rate of 0.58%. Calculate the present value of each call option's exercise price and the adjusted intrinsic value for each call option. (Round your answers to 2 decimal places.) Strike SO 60 70 60 7.50 62.77 62.57 67.80 6.48 Intrinsic Value SO 62.77 62.57 67.80 6.48 PV(X) Adjusted Intrinsic Value

Subject: physics

Calculate the Forward Price of an asset with the following data points: • Current Spot Price: $58.75 • Risk Free Rate: 2.0% • Contract Length: 3 months • Known Income (1): $5.00 • Average Yield (q): 0.0% • Delivery Price (K): $60 Round to 2 decimal places.