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5) A stock is currently trading at $54. A put option has strike price $59, o=21%, and maturity of 6 months. Interest rat
Posted: Mon Jan 17, 2022 8:09 am
by answerhappygod
- 5 A Stock Is Currently Trading At 54 A Put Option Has Strike Price 59 O 21 And Maturity Of 6 Months Interest Rat 1 (71.28 KiB) Viewed 72 times
5) A stock is currently trading at $54. A put option has strike price $59, o=21%, and maturity of 6 months. Interest rates are 3% per year. 5a) What is the probability that the option will end up “in-the-money"? 5b) What is the delta of the option? 5c) What is the price of the option? 5d) If you buy 100 options, how many stocks should you buy or sell to be hedged? What is the equivalent notional position?