Please answer the following questions with step by step work with topics about capital markets and finance.

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optionvalue.xlsx
Home>Business & Finance homework help>Financial markets homework help>Please answer the following questions with step by step work with topics about capital markets and finance.

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OPTION VALUE CALCULATOR
CURRENT PRICE BLACK SCHOLES CALL VALUE (a) 2.463793 2.463799
OF STOCK 43.075
HEDGING THE OPTION
STRIKE PRICE 43.000 STOCK POSITION (b) 22.962741
AMOUNT BORROWED (c) 20.498948
RISK-FREE RATE 0.000 LEVERAGE RATIO (b/a) (d) 9.320078
VOLATILITY 0.200 C_S (DELTA) 0.533087
C_SS (GAMMA) 0.065264
TIME TO EXP 0.500 DERIVATIVES C_Sigma (VEGA) 12.109417
-C_(T-t) (THETA) 2.421883
CURRENT DATE 04/09/12 C_r (RHO) 10.249474
C_X -0.476720
EXP DATE 04/14/12
IMPLIED VOLATILITY 0.24017 -2.4637988
MARKET PRICE* 2.950 TIME TO EXPIRATION 0.50000 0.20000000
VALUE OF PUT:
*OPTIONAL SAME STRIKE AND TIME TO EXP 2.388793
1.000 0.500
0.000 0.014 d1 0.083033192672
1.000 0.500 d2 -0.058388163565
Implied Volatility Intermediate Calculations
0.000000 0.000000
0.2000 0.2000
0.083 -0.058 0.083033 -0.058388 0.083 -0.058 0.083033 -0.058388
0.083 0.058 0.083033 0.058388 0.083 0.058 0.083033 0.058388
0.981 0.987 0.981129 0.986655 0.981 0.987 0.981129 0.986655
1.174 1.197 1.174418 1.196998 1.174 1.197 1.174418 1.196998
0.398 0.398 0.397569 0.398263 0.398 0.398 0.397569 0.398263
0.533 0.523 0.533087 0.523280 0.533 0.523 0.533087 0.523280
0.533 0.477 0.533087 0.476720 0.533 0.477 0.533087 0.476720
-2.463799 12.109417 12.109417 -2.463799 12.109417 12.109417
0.075000 -0.203461 0.075000 -0.203461
-0.003461 0.000000 6.070305 -0.003461 0.000000 6.070305
0.010000 6.070305 0.010000 6.070305
0.000000
0.000000
0.2000 0.000000
ERROR:#REF! -0.058 ERROR:#REF! -0.058388 43.075000
ERROR:#REF! 0.058 ERROR:#REF! 0.058388 0.000000
ERROR:#REF! 0.987 ERROR:#REF! 0.986655
ERROR:#REF! 1.197 ERROR:#REF! 1.196998
ERROR:#REF! 0.398 ERROR:#REF! 0.398263
ERROR:#REF! 0.523 ERROR:#REF! 0.523280
ERROR:#REF! 0.477 ERROR:#REF! 0.476720
ERROR:#REF! 12.109417 12.109417
ERROR:#REF! ERROR:#REF!
ERROR:#REF! 0.000000 ERROR:#REF!
0.010000 ERROR:#REF!
3.000000000000
s 43.07500 0.00174
x 43.00000 43.00000
r 0.00000 1.000000000000 PRICE < S - PV(X)
t 0.50000 2.000000000000 PRICE > S
mp 2.95000 3.000000000000 0.240173935890
vol d1 d2 f(x) f'(x)
50.00000 17.67772 -17.67762 40.12500 25.00000 25.000000000000
25.000000000000 8.83893 -8.83874 40.12500 12.500000000000 12.500000000000
12.500000000000 4.41961 -4.41922 40.12457 6.250000000000 6.250000000000
6.250000000000 2.21010 -2.20931 38.95759 3.125000000000 3.125000000000
3.125000000000 1.10564 -1.10407 28.53833 1.562500000000 1.562500000000
1.562500000000 0.55400 -0.55085 15.13505 0.781250000000 0.781250000000
0.781250000000 0.27937 -0.27306 6.45319 0.390625000000 0.390625000000
0.390625000000 0.14442 -0.13180 1.81500 0.195312500000 0.195312500000
0.195312500000 0.08167 -0.05644 -0.54297 0.097656250000 0.097656250000
0.292968750000 0.11199 -0.09517 0.63811 0.048828125000 0.048828125000
0.244140625000 0.09641 -0.07622 0.04800 0.024414062500 0.024414062500
0.219726562500 0.08890 -0.06647 -0.24739 0.012207031250 0.012207031250
0.231933593750 0.09263 -0.07138 -0.09967 0.006103515625 0.006103515625
0.238037109375 0.09451 -0.07381 -0.02583 0.003051757813 0.003051757813
0.241088867188 0.09546 -0.07502 0.01109 0.001525878906 0.001525878906
0.239562988281 0.09499 -0.07441 -0.00737 0.000762939453 0.000762939453
0.240325927734 0.09522 -0.07471 0.00186 0.000381469727 0.000381469727
0.239944458008 0.09510 -0.07456 -0.00275 0.000190734863 0.000190734863
0.240135192871 0.09516 -0.07464 -0.00045 0.000095367432 0.000095367432
0.240230560303 0.09519 -0.07468 0.00071 0.000047683716 0.000047683716
0.240182876587 0.09518 -0.07466 0.00013 0.000023841858 0.000023841858
0.240159034729 0.09517 -0.07465 -0.00016 0.000011920929 0.000011920929
0.240170955658 0.09517 -0.07465 -0.00001 0.000005960464 0.000005960464
0.240176916122 0.09518 -0.07465 0.00006 0.000002980232 0.000002980232
0.240173935890 0.09518 -0.07465 0.00002 0.000001490116 0.000001490116