A non-dividend paying stock is selling for $52.50. The standard deviation of its returns is 45% p.a. The risk free rate is 4% p.a. Calculate your answer based on this input table. Inputs Standard Deviation (annual) 45% Maturity (in years) 0,50 Risk-Free Rate (annual) 4% Exercise Price $60,00 Dividend Yield (annual) 0 Stock Price=$52.50 $52,50 d1 is: -0,1977 (d) What is the delta of the put?
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A non-dividend paying stock is selling for $52.50. | |
The standard deviation of its returns is 45% p.a. | |
The risk free rate is 4% p.a. |
Calculate your answer based on this input table. | |||
Inputs | |||
Standard Deviation (annual) | 45% | ||
Maturity (in years) | 0,50 | ||
Risk-Free Rate (annual) | 4% | ||
Exercise Price | $60,00 | ||
Dividend Yield (annual) | 0 | ||
Stock Price=$52.50 | $52,50 | ||
d1 is: | -0,1977 | ||
(d) What is the delta of the put? |
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- The market premium, E(RM)−rfis estimated to be 8% per annum, while the risk-free return (rf) is 2.5%. What is the expected return of stock KO if it's beta estimate is βKO=0.55 ? Enter rate in decimal form, rounded to the fourth digit, as in "0.1234"The risk-free rate is 4.15 percent. What is the expected risk premium on this stock given the following information? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Probability of Rate of Return if State State of the Economy State of Economy Вoom Occurs 0.35 16% Normal 14% 0.651. Risk and return The stock of Hawkeye Corporation (HC) currently trades for $100. One year from now the stock price is either $75 with a 35% chance, $100 with a 10% chance, or $120 with a 55% chance. Determine the three possible end-of-year returns and then find expected return, variance and volatility of HC stock. Prob. 35% 10% 55% Value $75 $100 $120 Return tot I
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