Percentage Return Bussines Assignments Help
In every investment, a person does there are expectations of the profit although there are time changes. The percentage return is mainly rated manually where anything above 7% is considered good. In every organization, there must be business-related experts to ensure smooth running. Most are natured from the business lessons and subjects they take at various levels in schools, but it is tough for many. My homework writers offer finance assignment help. Below is an example of a question.
1. a) Suppose you bought one call option contract for $200 (a standard option contract size is 100 shares). The strike price is $50. What is the percentage return on your investment if the stock price is $60 just before the option expires? What is the answer if the stock price is $40 instead? (5 marks)
b) In a binomial model, the stock price at time 0 is 120. At time 1, the stock price will be either 144 or 100. The annual effective risk-free rate of interest from time to time 1 is 0.10. A call option on the stock with exercise price 110 expires at time 1. Find the number of shares of stock in the replicating portfolio at time 0. Provide a comprehensive solution. (7 marks)
c) Another stock is available in addition to the stock and call option described in Question 11b). This stock has a value of 100 at time 0. The stock price at time 1 is either X (when the first stock is 100) or 1.2x (when the first stock is 144). Find the value of X that results in no arbitrage opportunities. (8 marks)
Get Assignment Help
Business studies is an umbrella subject for different disciplines for example accounting and finance. We are here for you if the subject gives you trouble. My homework writers offer high-quality assignment writing at an affordable price.
Top-quality papers guaranteed
100% original papers
We sell only unique pieces of writing completed according to your demands.
We use security encryption to keep your personal data protected.
We can give your money back if something goes wrong with your order.
Enjoy the free features we offer to everyone
Get a free title page formatted according to the specifics of your particular style.
Request us to use APA, MLA, Harvard, Chicago, or any other style for your essay.
Don’t pay extra for a list of references that perfectly fits your academic needs.
24/7 support assistance
Ask us a question anytime you need to—we don’t charge extra for supporting you!
Calculate how much your essay costs
What we are popular for
- English 101
- Business Studies