All Questions
4 questions
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Calculating European call option, the Bjork way
We have a 3 period binomial tree with values:
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2
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137
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How can I calculate returns for three investment strategy?
Assume that the price of DF stock went from a price of $104 on March 2 to 146 on April 1.
With a current stock price of 146, there is a call option available on the DF stock with an exercise price ...
- 109
0
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1
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Question about the writing a call option on an existing portfolio of stocks [closed]
My question is Please discuss about the following statement
“ the advantages and disadvantages of writing a call option on an existing portfolio of stocks”
Note that
I read an article nearly ...
- 109
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2
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Understanding the payoff of currency options
I am self-studying for an actuarial exam and I am having a hard time understanding what happens when a currency option pays off.
Consider the below problem. The payoff at $C_u$ would be $\max(x_u - ...
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