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Which of the following statements is most correct

Resolved Question:

Which of the following statements is most correct?





a. Semistrong-form market efficiency means that stock prices reflect all public information.

b. An individual who has information about past stock prices should be able to profit from this information in a weak-form efficient market.

c. An individual who has inside information about a publicly traded company should be able to profit from this information in a strong-form efficient market.

d. Statements a and c are correct.

e. All the statements above are correct.
Submitted: 7 years ago.
Category: Homework
Expert:  Chris M. replied 7 years ago.
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Customer: replied 7 years ago.

Financial Options

 

Due date: November 15, 2009

 

Instruction: Please submit your assignment as an attachment

to my Blackboard E-mail by midnight on the due date


Solve all problems in an excel sheet.

Problem 1

Yesterday, the stock price of ABC Inc. closed at $58.00. Assume the value of options of ABC maturing in a month with different strike prices are as following:

Call options

 

Put options

Symbol

Price

Strike Price

Symbol

Price

XYZEX.X

14.60

45.00

XYZQX.X

0.15

XYZEK.X

9.40

50.00

XYZQK.X

0.45

XYZEY.X

4.30

55.00

XYZQY.X

1.35

XYZEL.X

1.55

60.00

XYZQL.X

3.40

XYZEZ.X

0.30

65.00

XYZQZ.X

7.60

XYZEM.X

0.10

70.00

XYZQM.X

12.50

 

  • 1. Create one table each for call options and put options in Excel that showing the following rows:
  • a. Stock price
  • b. Strike price
  • c. Exercise value
  • d. Market price
  • e. Premium

 

Note: here the stock price is constant and there are different strike prices.

 

 

 

Call option

 

 

 

 

 

 

Stock

58.00

58.00

58.00

58.00

58.00

58.00

Strike

45.00

50.00

55.00

60.00

65.00

70.00

Exercise value

13.00

?

?

?

?

?

Call price

14.60

?

?

?

?

?

Premium

1.60

?

?

?

?

?

 

 

 

 

 

 

 

Put option

 

 

 

 

 

 

Stock

58.00

58.00

58.00

58.00

58.00

58.00

Strike

45.00

50.00

55.00

60.00

65.00

70.00

Exercise value

0.00

?

?

?

?

?

Call price

0.15

?

?

?

?

?

Premium

0.15

?

?

?

?

?

 

Problem 2

A call option for XYZ maturing in three months (t = 0.25 years) with a strike price of $40 is selling for $10.0. The risk-free rate is 6 percent. The current stock price for XYZ is $49.52. Using the put-call parity, find the value of a put option with the same maturity and the same strike price.

 

 

 

 

Customer: replied 7 years ago.

Financial Options

 

Due date: November 15, 2009

 

Instruction: Please submit your assignment as an attachment

to my Blackboard E-mail by midnight on the due date


Solve all problems in an excel sheet.

Problem 1

Yesterday, the stock price of ABC Inc. closed at $58.00. Assume the value of options of ABC maturing in a month with different strike prices are as following:

Call options

 

Put options

Symbol

Price

Strike Price

Symbol

Price

XYZEX.X

14.60

45.00

XYZQX.X

0.15

XYZEK.X

9.40

50.00

XYZQK.X

0.45

XYZEY.X

4.30

55.00

XYZQY.X

1.35

XYZEL.X

1.55

60.00

XYZQL.X

3.40

XYZEZ.X

0.30

65.00

XYZQZ.X

7.60

XYZEM.X

0.10

70.00

XYZQM.X

12.50

 

  • 1. Create one table each for call options and put options in Excel that showing the following rows:
  • a. Stock price
  • b. Strike price
  • c. Exercise value
  • d. Market price
  • e. Premium

 

Note: here the stock price is constant and there are different strike prices.

 

 

 

Call option

 

 

 

 

 

 

Stock

58.00

58.00

58.00

58.00

58.00

58.00

Strike

45.00

50.00

55.00

60.00

65.00

70.00

Exercise value

13.00

?

?

?

?

?

Call price

14.60

?

?

?

?

?

Premium

1.60

?

?

?

?

?

 

 

 

 

 

 

 

Put option

 

 

 

 

 

 

Stock

58.00

58.00

58.00

58.00

58.00

58.00

Strike

45.00

50.00

55.00

60.00

65.00

70.00

Exercise value

0.00

?

?

?

?

?

Call price

0.15

?

?

?

?

?

Premium

0.15

?

?

?

?

?

 

Problem 2

A call option for XYZ maturing in three months (t = 0.25 years) with a strike price of $40 is selling for $10.0. The risk-free rate is 6 percent. The current stock price for XYZ is $49.52. Using the put-call parity, find the value of a put option with the same maturity and the same strike price.

 

 

 

 

Expert:  Chris M. replied 7 years ago.

HelloCustomer

 

You need to post this as a question and price it.

 

Thanks,

Chris M.