Finance-AW-Q419 Online Services


problem 1

the current price of a stock is S=20. It is known that at the end of 6 months the stock will be either Su= 24 or Sd=18.]

1. Compute the risk-neutral price of the call option with the strike price E=21 and r= 5%.
2. Show that there exists arbitrage if the price of the call option is below the risk-neutral price. Consider a particular example- the price of the Call option with the above parameter is C= 0.75.
Show the details for the arbitrage ( buy the call option and short-sell delta shares). Show details computations for the arbitrage for S(T) = 18 and S(T)= 24.

Problem 4

Assume that observations on a stock prive at the end of each 15 consecutive weeks are

30.2, 32, 31.1, 30.1, 30.2, 30.3, 30.6, 33, 32.9, 33, 33.5, 33.5, 33.7, 33.5, 33.2

Estimate the stock price volatility. Use trading days to estimate volatility. Number of trading days in a year = 252. Note: the time-step for observation is one calendar week, but you need to use trading days to compute the estimate. Use the log formula to express returns; use the unbiased estimator for the variance, take the mean into account when computing the volatility. Clearly write all the formulas you’re using.

You can read more about our case study assignment help services here.

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 Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id with Case Id in the email body. Case Id 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 Case Id . 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.

Case Approach

Scientific Methodology

We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:

Defining Problem

The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.

Structure Definition

The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.

Research and Analysis

This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.

Conclusion & Recommendations

A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.

Related Services


problem 5

Consider the following porfolio – buy a call and put options on the same asset with the same strike prive E.

i) Derive and plot the payoff function for this portfolio.
ii) Derive the final condition (time=expiry) and two boundary condition (S=0 and S –> infinity) for pricing with the Black-Scholes equation.

Product Code-Finance-AW-Q419
Looking for best Finance-AW-Q419 online ,please click here