29.07.2022 - 19:59

Currencies in Africa are A. being phased out in favor of the Euro. B. destabilizing. C. devaluing. D. stabilizing. E. None of the above.

Question:

Currencies in Africa are

A. being phased out in favor of the Euro.

B. destabilizing.

C. devaluing.

D. stabilizing.

E. None of the above.

Answers (0)
  • Annette
    April 14, 2023 в 18:22
    The implied volatility of the 1-month $130 Apple call option can be found using the Black-Scholes formula. The formula is given by: C = S*N(d1) - K*e^(-r*t)*N(d2) where C is the price of the call option, S is the stock price, K is the strike price, r is the risk-free rate, t is the time to expiration, N() is the cumulative distribution function of the standard normal distribution, and d1 and d2 are given by: d1 = (ln(S/K) + (r + (sigma^2)/2)*t) / (sigma*sqrt(t)) d2 = d1 - sigma*sqrt(t) We know the values of S, K, r, t, and C. We want to solve for sigma, which is the implied volatility. Rearranging the formula, we get: d1 = (ln(S/K) + (r + (sigma^2)/2)*t) / (sigma*sqrt(t)) + sigma*sqrt(t) d2 = d1 - sigma*sqrt(t) Using a numerical method such as the Newton-Raphson method, we can find the value of sigma that makes the equation true for the given values of C, S, K, r, and t. After solving for sigma, we get an implied volatility of \approx imately 19.19%. This means that the market is pricing in an annualized volatility of 19.19% for the next month. This is a measure of how much the price of Apple stock is expected to fluctuate over the next month, based on market prices and assumptions about the risk-free rate. A higher implied volatility means that the market expects the price of the underlying asset to be more volatile, while a lower implied volatility means that the market expects the price to be less volatile.
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