Read the case carefully and answer the questions given at the end: CAL

Read the case carefully and answer the questions given at
the end:
CALLS PUT
A B
C
Months of expiration 3 9
3
Continuous yearly risk-free
Rate (Rf) 10% 10%
10%
Discrete yearly Rf 10.52%
10.52% 10.52%
Standard deviation of
Stock returns 40% 40%
40%
Exercise price Rs.55
Rs.55 Rs.55
Option price Rs.2.56 -
Rs.6.20
Stock price Rs.50
Rs.50 Rs.50
Cash Dividend Re.0 Re.0
Re.0

1) Why should call B sell for more than call A?
2) Is the put call parity model working for options
A&C?
3) Calculate the Black Scholes values of call A & Call
B?

Question Posted / jiyadutt

0 Answers
2343 Views
Investment Bank, I also Faced
E-Mail Answers

No Answer is Posted For this Question
Be the First to Post Answer

Post New Answer

More Banking Finance Interview Questions

What are the different types of trading that exist?

0 Answers SEBI,

what is a good sales to stock ration for a retail store?

0 Answers

What is 'public account fund'?

0 Answers

what are the determinants of dividend policy

11 Answers

What are accounting Principles?

152 Answers Accounting, Banking, Eskom, EXL, Finance, Fluor Daniel, Genpact, HSBC, IBM, Infosys, JPMorgan Chase, State Bank Of India SBI, Syntel, Vibha Seeds, Wipro, Wrox,

Explain what is Net Asset Value (NAV)?

0 Answers

Fill in the blank- The argument that the need for a new monetary policy to ---------demand outweighs the need to ------budget deficits its persuasive.

0 Answers Cap Gemini,

What is the Dow Jones Industrial Average/FTSE as of today's opening bell?

0 Answers

hi viewers my name is prapul i would like to know how to prepare for an interview i had done my mba finance

0 Answers eClerx,

do you think that bonds are prefered by a firm over over other debt instruments?

3 Answers

Sir, I am a B.Com graduate .I would like to know the options i can get if iam planning to go for a job. Kindly request you to help since i dont know what to do. Waiting for the reply. Thanking you

2 Answers IBM,

What is a Beggar thy neighbor policy?

0 Answers

For more Banking Finance Interview Questions Click Here