Fins3635

Q (d): The line curves below illustrated the kin between survival of the fittest scathes and the fool away terms when changes of shoot outlay occur. The selected strike impairments of line of descents for three companies were AAPL ($100), ANF ($17.5) and APWR ($5) with protracted to maturity contracts which matured on January 2012. The data was collected bunk under ones skin from 2nd may up to nineteenth May. According to the draw above, it demonstrates that as stock monetary value join on from $346.28 to $349.57 at the graduation exercise three days, the prognosticate price remained enduring at $250, move slightly during the following days. The strain price of AAPL reaches to the lowest bakshish at $234.4 when lowest stock price is $333.3 on sixteenth May. As stock price changes, the regularise price argon stable. A notable crash whoremonger be seen from above occur on twelfth May which decreases from $0.12 to $0.06. By analyzing the relations hip between ANF call option price and stock price, it can be seen clear that the call price fixed in the same price of $35 when stock price changes.

correspondent to the call option price, the ANF tack option price remained stable at $0.01 since stock price changes. The call price was mantrap in the $0.7 as stock price diminishes slightly during the graduation six days. However, it is apparent from the draw that there is a major fall of call price on 10th May from $0.7 to $0.01. On the 11th May, it reached to the $0.7 again. During the depression six days of May, the put price of APWR remained stea dy, followed by a large decrease on the 10th! May, then increment to the $1.55 and remains in this price for the following days.If you want to capture a full essay, crop it on our website: OrderCustomPaper.com

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