Why are elevators more common on high wing aircraft? (Tailplane Aero)
Why did the SR-71’s fuel tanks leak on the ground? (SR-71)
Why did the SR-71’s fuel tanks leak on the ground? (SR-71)
What kind of wings does the space shuttle have? (Space Shutt…
What kind of wings does the space shuttle have? (Space Shuttle)
At what speed does the hypersonic regime begin? (Hypersonic)
At what speed does the hypersonic regime begin? (Hypersonic)
Math Question 9: Consider a 2-year Asian arithmetic average…
Math Question 9: Consider a 2-year Asian arithmetic average strike put on a non-dividend paying stock whose current price is $50. Suppose that there are two time steps of 1 year, and in each time step the stock price either moves up by 20% or moves down by 20%.The annual continuously compounded risk-free interest rate is 5%. Find the price of the Asian arithmetic average strike put.Enter your answer in Dollars rounded to two decimal places.
Math Question 1: A market-maker sells option A for $10. This…
Math Question 1: A market-maker sells option A for $10. This option’s delta is 0.6557 and its gamma is 0.02. The market maker proceeds to delta-gamma hedge this commitment by trading in the underlying and also in option B on the same stock. The latter option’s price is $4.70, its delta is 0.5794 and its gamma is 0.04. What is the market-maker’s resulting position in the underlying stock?
Math Question 7: Given the following information on the retu…
Math Question 7: Given the following information on the returns for stock 1 and 2Scenario Probability Return K1 Return K2ω1 0.4 -10%20%ω20.2 0%20%ω3 0.4 20% 10%(a) Find the weights in a portfolio, V, with expected return µV = 46%(b) Compute the risk σV of this portfolio.Answer each part of the question above on paper. Once completed, select “True” below.
Math Question 6: Consider a non-dividend-paying stock whose…
Math Question 6: Consider a non-dividend-paying stock whose current price is $100. A market maker writes a one-year call option on this stock and sells it for $4.00. He then proceeds to delta-hedge his commitment by trading in the shares of the underlying stock. The call option’s delta is 0.75, its gamma is 0.08 and its theta is−0.02 per day. The continuously compounded, risk-free interest rate is 4%. The stock price has risen to $101 after one day. Use the delta-gamma-theta approximation to find the change in market maker’s portfolio after one day.Enter your answer in cents (NOT dollars) rounded to two decimal places.
Math Question 2: Assume Black-Scholes framework. Given a non…
Math Question 2: Assume Black-Scholes framework. Given a non-dividend stock with current price $70 and volatility 30% per annum. The continuously compounded risk free rate is 8% per annum. Consider a European call option with expiry time 1 year and strike price $75. What is the price of a knock-out call with a barrier of $74 (in dollars)?
Math Question 8: Consider three risky securities with expect…
Math Question 8: Consider three risky securities with expected returns µ1 = 0.08, µ2 = 0.10, µ3 = 0.16 and with the covariance matrix and its inverse given by Screenshot 2025-05-05 at 1.24.45 PM.png (a) Find the weights of the minimum variance portfolio with these three securities. (b) Does this portfolio involve short-selling? Answer each part of the question above on paper. Once completed, select “True” below.