Recent content by nazia

Thanks guys. That really helps.

Hi, Could someone please explain the possible reasons for why option prices on a particular stock calculated using the Black-Scholes option pricing formula would be different to the real life option prices? Thanks.

Ok, great, thanks for all the help!

Is there a way I can use a combination of the two different priced puts to simulate a strike price of 436.50?

Thanks, I guess it was just the textbook response that I was looking for. I dont think the lecturer is interested in a real life response. Just that we understand the way options work.

Is the question or my reasoning flawed?

This was the question given: On the 9th of March each group should buy a copy of the FT. For one of the stocks in your Portfolio, use an available option contract (see the Equity Options table in the Financial Markets section of the FT) or combination of contracts to hedge 5000 shares. Buy an...

I completely understand what your getting at but this is actually just a university exam question and therefore assumes that timing is perfect! So in view of this... what answer would I go for?? (Sorry, should've mentioned this before!)

Hello, I wonder if anyone can help with a question I have. (This is theoretical btw) I have 5000 shares in BSkyB. Stock Price on 9th March - 436.50 With a strike price of 430: Price of a March Call:19.5 Price of a March Put: 13 With a strike price of 440: Price of a March Call: 14 Price of a...

Sorry just to add, the above email add is just for the ftse 100 div yield.

Hi all, I've actually found the data now. For anyone else who requests this in the future, just email [email protected] and give them the date range that you want and they'll send it over to you. Thanks for everyones help. Nazia

Professors reply is: Try to use a market interest rate (Libor or repo rate not base rate or short dated securities). But nothing on the div yield. Hull is the textbook we're using!

Thanks for you help. Sorry to sound like such an idiot but Im still not sure where to look! Im doing a small assignment at university on pricing futures and we've been asked to find the dividend yield and an appropriate risk free rate in order to help us price the futures! I dont know where to...

Hi, Could someone tell me where I can find the current dividend yield on the ftse 100? Also, what would I use for the current risk-free interest rate? Thanks.