Using historical data you chose (monthly and 20 years period) and assuming that the strike price K is lower than current stock price by 2 dollars and risk free rate is 2%, find the following.

The value of a 3-year call option price written on those stocks. First, you need to compute the parameters of Black-Sholes model (T,SIG, ER…, etc). (3 points)

Use Garman–Kohlhagen model to compute a 2-year currency option prices. Assume the foreign risk free rate is 3%. Assume K is lower than Spot price by 2%. (3 points).

Compute the price for a zero coupon bond with a maturity of 3 years using the Vasicek model. (2 points).

Calculate the gross rate of return for ups and downs (u and d) for the stock you chose. (2 points)

Compute the call option price with a maturity of 2 years written on a 3-year bond assuming K =990. (2 points).

Plot the yield curve for Vasicek model. (3 points)

1 attachments

**We offer the best custom writing paper services. We have answered this question before and we can also do it for you.**

**GET STARTED TODAY AND GET A 20% DISCOUNT coupon code DISC20**

**We offer the bestcustom writing paper services. We have done this question before, we can also do it for you.**

#### Why Choose Us

- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee

#### How it Works

- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "
**PAPER DETAILS**" section. - Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “
**CREATE ACCOUNT & SIGN IN**” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page. - From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.