Question

Today’s price of Chipotle (CMG) is S0. CMG does not pay dividends. A one-year European call option on CMG has a strike of $450 and a premium of $104.52. A one-year European put option on CMG has a strike of $450 and a premium of $7.57. The c.c. risk-free interest rate is five percent. Assume there is no arbitrage. What is today’s stock price S0?

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Today’s price of Microsoft (MSFT) is $100 per share. MSFT does
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percent. Assume there is no arbitrage and the Black-Scholes model
assumptions hold.
The market price of a European call option on MSFT with a strike
of $100 and a maturity of one year is $1.99. What is the implied
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Today’s price of Microsoft (MSFT) is $100 per share. MSFT does
not pay dividends. The c.c. risk-free interest rate is zero
percent. Assume there is no arbitrage and the Black-Scholes model
assumptions hold. The market price of a European call option on
MSFT with a strike of $100 and a maturity of one year is $1.99.
What is the implied volatility of the call option?

Today’s price of Marriot (MAR) is $75. MAR does not pay
dividends. Each year, the
stock price of MAR can either go up or down. If the stock price
goes up, the gross rate
of return is u = 2. If the stock price goes down, the gross rate of
return is d = 0.5.
The c.c. risk-free interest rate is zero percent. You are
interested in a European put
option on MAR with a strike of $80 and a...

Today’s price of Apple (AAPL) is $200 per share. AAPL does not
pay dividends. The annualized volatility of AAPL is 15 percent. The
c.c. risk-free interest rate is one percent. Assume there is no
arbitrage and the Black-Scholes model assumptions hold.
What is the price of a European call option on AAPL with a
strike of $200 and a maturity of two months?

1- A one-year European call option on Stanley Industries stock
with a strike price of $55 is currently trading for $75 per share.
The stock pays no dividends. A one-year European put option on the
stock with a strike price of $55 is currently trading for $100. If
the risk-free interest rate is 10 percent per year, then what is
the current price on one share of Stanley stock assuming no
arbitrage?
2- The current price of MB Industries stock...

The price of a European call on a stock that expires in one year
and has a strike of $60 is $6. The price of a European put option
on the same stock that also expires in one year and has the same
strike of $60 is $4. The stock does not pay any dividend and the
one- year risk-free rate of interest is 5%. Derive the stock price
today. Show your work.

The price of a European call on a stock that expires in one year
and has a strike of $60 is $6. The price of a European put option
on the same stock that also expires in one year and has the same
strike of $60 is $4. The stock does not pay any dividend and the
oneyear risk-free rate of interest is 5%. Derive the stock price
today. Show your work.

A stock that does not pay dividend is trading at $20. A European
call option with strike price of $15 and maturing in one year is
trading at $6. An American call option with strike price of $15 and
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The valuation of a European call option on a stock that does not
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*2.9317
*2.7498
*2.5412
*3.0241

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flat, with all risk-free interest rates being 6%. If the price of a
European put option with the same maturity and strike price is $3,
what will be the arbitrage profit at the maturity?

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