ADMS 4503 Lecture Notes - Bull Spread, Risk-Free Interest Rate, Alphabet Inc.

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You must sign and submit the standard cover page supplied as the last page of this assignment. Staple your assignment prior to handing it in. This assignment is due on april 1, 2013. If it is handwritten and too difficult to read due to messiness and poor handwriting, it will receive zero credit. You must show your work to receive full credit. This assignment contains 5 questions and carries a total of 30 points. (4) (5) The spot price of gs is . 53 and the 6-month 165-strike put is selling at . Gs is expected to pay a dividend of sh. 50 in 4 and 7 months. Show all details. (2 marks) (c) will there still be an arbitrage opportunity if the options above were. Consider a 1-year bull call spread on eqix with strikes of and . Eqix spot price is and its volatility is 30%.

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