Archive for December 30th, 2009
the_gold3n_child asked:
The current price of a stock is $33, and the annual risk-free rate is 6 percent. A call option with an exercise price of $32 and 1 year until expiration has a current value of $6.56.
Tiffanie Lamoree
The current price of a stock is $33, and the annual risk-free rate is 6 percent. A call option with an exercise price of $32 and 1 year until expiration has a current value of $6.56.
Tiffanie Lamoree
Kevin asked:
There’s a test in my Finance class tomorrow and guess who discovered he had the wrong book!
There’s a test in my Finance class tomorrow and guess who discovered he had the wrong book!
Anyway, I went to investopedia and cruised through the book I DO have and couldn’t find how to calculate the Stock Market Return OR how to find the profit per share from exercising a stock option.
I assume the exercised option is just the current price minus the option price, but I have no clue about the SMR.
Thanks!
Buster Kucera