HW%202%202010 - HomeworkAssignment#2

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1 Slides for students of FNCE305 only. All Rights Reserved. Prof. Tu Jun©2010 Homework Assignment #2  Homework Assignment #2  (Due: (Due:  5pm 31st of March (Wed), please submit to   5pm 31st of March (Wed), please submit to  Box No. 18  Box No. 18  on the 4th level of  on the 4th level of  Business School ( Business School ( located near the Information Desk located near the Information Desk Should be done  Should be done  individually) individually)
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2 Slides for students of FNCE305 only. All Rights Reserved. Prof. Tu Jun©2010
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Slides for students of FNCE305 only. All Rights Reserved. Prof. Tu Jun©2010 5.5.0  Assume Intel pays no dividend for the next 3 months. Its stock is  selling at $50. The interest rate is 5% and volatility is 40%. (1) What is the price of a call with strike $60 and time to maturity 3  months? (2) What is the price of a put with strike $40 and time to maturity 3 
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This note was uploaded on 04/14/2010 for the course FINANCE fnce 305 taught by Professor Proftujun during the Spring '10 term at Singapore Management.

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HW%202%202010 - HomeworkAssignment#2

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