Derivagem Finance Assignment Help With Solution

Derivagem Finance Assignment Help With Solution

Q1. Derivagem is useful for pricing options but it has some limitations. Explain why it’s impossible to solve Q12.5 in page 293 with Derivagem.
Q2. A stock price is currently $100. Over each of the next three six-month periods, it is expected to go up by 8% or down by 8%. The risk-free interest rate is 2% per annum.

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.


Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
Best Customer Service
Our customer representatives are working 24X7 to assist you in all your assignment needs. You can drop a mail to or chat with our representative using live chat shown in bottom right corner.
Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services

a. What is dt, the length of one period?
b. What is u, the up factor? Note that the answer is not 10%.
c. What is d, the down factor?
d. Calculate p, the risk-neutral probability that the stock price will go up next period.
Hint: End of chapter 12, Q5
For Q3 and Q4, use the following information.
A non-dividend paying stock is currently trading at $100 and its volatility is 40%. Consider a put option on this stock, with a strike price of $110, expiring in 1.5 years. The current risk-free rate is 2% per annum. We will price the put option with a 3-step binomial tree (the number of steps = 3).
Q3. First, calculate the European put option price in a spreadsheet. Then use Derivagem to price it. Confirm these 2 prices match. Include the Derivagem output (screenshot or copy paste).
Q4. Calculate the American put option price in a spreadsheet. Then use Derivagem to price it and confirm. These 2 prices must match but will be higher than Q3 answer. Include the Derivagem output.

Product Code :Fin168

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.