Crowdly
Add to Chrome
L15.2028 - Finance I (2025/2026)
Looking for L15.2028 - Finance I (2025/2026) test answers and solutions? Browse our comprehensive collection of verified answers for L15.2028 - Finance I (2025/2026) at moodle.lisboa.ucp.pt.
Get instant access to accurate answers and detailed explanations for your course questions. Our community-driven platform helps students succeed!
Assume only for this question stock with 4 months to maturity/expiration date, and strike price of €20 is €11,5. Find the profit of an arbitrage strategy where you trade (buy or sell) one unit of a European Call over stock with 4 months to maturity/expiration date and a strike price of €20.
(Insert your answer in
monetary units. For example, if your answer is €231.187, please insert 231.187)
Consider only for this question that you just created a portfolio with the following components from the table above and the stock itself:
· 2×Short stock
· 1×Long Call (K=20)
· 5×Short Put (K=20)
· 3×Short Call (K=25)
NewGears’s stock price in 4 months is €13,8. Compute the payoff of this combination in 4 months.
(Insert your answer in monetary units. For example, if your answer is €231.187, please insert 231.187)
For questions 5 to 7, consider the following information:
The current stock price of . The firm will pay a dividend per share equal to 10% of its stock price 9 months from now. Consider a risk-free rate APR (Annual Percentage Rate) of 13,6% quarterly compounded.
Find the risk-neutral probability of this firm’s stock moving up in the next quarter.
(Insert your answer as a
percentage. For example, if your answer is 0.673, you should insert 67.30)
Find the price today of a European Call over stock with 3 months to maturity/expiration date and a strike price of €20,4.
(Insert your answer in
monetary units. For example, if your answer is €231.187, please insert 231.187)
For questions 1 to 4 consider the following information:
You have information regarding several financial options for stock (all with
|
Strike (€)
|
Price (€)
|
European Call
|
20
|
5,2
|
European Put
|
20
|
?
|
European Call
|
25
|
3,2
|
The current stock price of stock is €18. The annual continuously compounded risk-free rate is 2,49%.
Assume only for this question stock, with a strike price of €25. Assume also that 4 months from now stock is worth €28,4. Compute your profit from this position.
(Insert your answer in
monetary units. For example, if your answer is €231.187, please insert 231.187)
Find the price today of a European Call over stock with 3 months to maturity/expiration date and a strike price of €18,8.
(Insert your answer in
monetary units. For example, if your answer is €231.187, please insert 231.187)
Consider only for this question that you just created a portfolio with the following components from the table above and the stock itself:
· 2×Short stock
· 1×Long Call (K=20)
· 3×Short Put (K=20)
· 3×Short Call (K=25)
NewGears’s stock price in 4 months is €14. Compute the payoff of this combination in 4 months.
(Insert your answer in monetary units. For example, if your answer is €231.187, please insert 231.187)
For questions 5 to 7, consider the following information:
The current stock price of . The firm will pay a dividend per share equal to 10% of its stock price 9 months from now. Consider a risk-free rate APR (Annual Percentage Rate) of 13,6% quarterly compounded.
Find the risk-neutral probability of this firm’s stock moving up in the next quarter.
(Insert your answer as a
percentage. For example, if your answer is 0.673, you should insert 67.30)
Assume only for this question stock with 4 months to maturity/expiration date, and strike price of €20 is €12,5. Find the profit of an arbitrage strategy where you trade (buy or sell) one unit of a European Call over stock with 4 months to maturity/expiration date and a strike price of €20.
(Insert your answer in
monetary units. For example, if your answer is €231.187, please insert 231.187)
For questions 1 to 4 consider the following information:
You have information regarding several financial options for stock (all with
|
Strike (€)
|
Price (€)
|
European Call
|
20
|
4,7
|
European Put
|
20
|
?
|
European Call
|
25
|
3,4
|
The current stock price of stock is €18. The annual continuously compounded risk-free rate is 3,48%.
Assume only for this question stock, with a strike price of €25. Assume also that 4 months from now stock is worth €26,3. Compute your profit from this position.
(Insert your answer in
monetary units. For example, if your answer is €231.187, please insert 231.187)