If the standard deviation of the continuously compounded returns (σ) on a stock is 40%,and the time interval is a year,then the upside change equals:
A) 88.2%.
B) 8.7%.
C) 63.2%.
D) 49.2%.
Correct Answer:
Verified
Q24: Calculate d2.
A)-0.02766
B)+0.02766
C)+0.2027
D)-0.2027
Q25: If the value of d2 is −0.5,
Q26: If the standard deviation of the continuously
Q27: If the standard deviation of the continuously
Q28: Calculate the value of d1.
A)0.3
B)0.7
C)-0.7
D)0.5
Q30: A stock is currently selling for $50.The
Q31: Important assumptions justifying the Black-Scholes formula include:
I.The
Q32: All else equal,if an option's strike price
Q34: All else equal,if the volatility (variance)of the
Q39: If the value of d is −0.75,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents