how do you price a european call option with brownian interest rate?
470901
first of all, u have to determine how will the price move. u need a probability destribution. ok.. u did. Brownian. then, the idea is simply to calculate the expectation of it's future value. since european options can only be exercised on the expiry date, this is very straight forward.\n\nThe idea is simple. u just need to solve the math which can get messy. But that's not a big problem. good luck.
727780
X(1.25)\nX=the amount in euro's that you won
1052000
The price at which a share can currently be Traded in the market
327196
It depends on the time horizon of the calculation, so that will give you the risk free rate.  Use the risk premium that your professor/company agrees with.  I don't remember what I use.  I think it's around 8.6%.  Then, you look up the beta, which happens to be 2.73 for this company.
461964
http://www.asx.com.au/investor/options/index.htm\n\nThis is the best website which gives an indepth and accurate information on Options and futures strategies.\nI am shure this will serve your purpose.
739164
You are correct.  If the price of the stock rises, the price of the call option will rise.  You can sell your call option and profit without having to exercise it.  The profit will usually be the same wether you sell the option or exercise and buy the stock and resell it.\n\nhth
879502
First of all, don't think your question is even right, but that's OK. This is option, not some software engineering - life cycle?\n\nWhen u said u paid $5 premium for a $10 call option, u mean the stock is currently trading at $10. If you exercise the call option u need to paid extra $1000 for the 100 shares of $10 stock xyz. You just paid $500 + $1000 = $1500 for 100 shrs  $10 stock means your  $1500 now becomes $1000 means you just lost $500.\n\nMy advice: Go to cboe.com, 1888options.com or buy the Mcmillan book and study...\n\nAnd by the way you remember don't use any broker that charge u more than $1 for 1 contract...\n\nGood luck!
525902
You now have 2 call options (200 shares) if it's a 2 for 1 split.  Works the same as a stock split.  More stock lower price.
909626
Lawrence Macmillan.  Options as a Strategic Investment.\n\nThe revered bible.\n\nBut before investing in this weighty tome, why not check out the education sections of the options exchanges:\n\nwww.cboe.com\nwww.888options.com (the clearing corporation)\nwww.m-x.ca (the montreal exchange, has the best discussion of "the Greeks" - deltas, thetas, gammas, rhos - that options traders sooner or later need to learn)\nwww.ivolatility.com - for a volatility calculator\nalso the international securities exchange, the boston exchange, the amex
355463
For you to understand option pricing at more than a superficial level you will need a certain mathematical level.  Ideally you will have had calculus and will understand the basics of differential equations and how to solve them.\n\nAssuming this, there is a very good book by John Hull which is called "Options, Futures and Other Derivatives" which is very expensive new but which you can get used for probably $60 used.  It will be worth the money.\n\nThis is the only options book I ever read (an earlier edition) and I have been trading derivatives since the early 1990s.
765911
I have been consistently getting about 800% returns per annum (on a £1000/- initial investment - as that was the max I was ready to loose). After 1 year, my balance was £7600/- after withdrawing my initial £1000/- at month 8.\n\nThis was possible by playing the Forex Market at very low risk on the GBP / Yen Exchange rate only. If you are a very systematic person and can control the risk taking urge, you make money. Once you loose the control, you loose your money. What I do is I just do a One Touch over 180 days which are the lowest the system will allow. One of my current investments is as follows:-\n\nOne Touch: Win GBP2000 if, at any time before midnight GMT on 16-MAR-07 [inclusive], GBP/Japanese Yen touches 223.7. \n \nTrade price was GBP1812 (=90% of payout). \nPayout is GBP2000 (=1.1 times trade price). \n\nThe current price of GBP/Japanese Yen is 223.11\nThe market price of GBP/Japanese Yen at the time of purchase of the bet was 222.78 (on 16-Nov-2006)\n\nThus over a period of max 15 days, the rate will be touched and I will get a profit of £188/-. This will be added in my account. The quickest profit has been in 2 days previously and the longest have been 20 days. This is very low risk. I do not understand how they can afford that. We need to take care that the bet is placed when the daily trend is downwards. It works but only if we do not become gready.\n\nDo register and try them out. They also give you £10/- free (after 15 days when you have done your address validation). So you can play and try with that amount and later inverst only after you are sure. Minimum investment to make a return ae about £9.20 pence so you may initially make only 80 pence or so profit every few days if you do not put in any of your own money. I enclose my referal link but I will not earn any referal commision if you follow my strategy as they give a commision only if the payout is greater than 80%.\n\nWell best of luck
642827
How is it debatable?  You don't think its going to go to its strike price?  See with calls you need to remember that calls have positive time value.  Puts can have negative time value, hence the price of puts is generally lower then those of calls.  [put call parity Put Price = Call Price -Stock + Present Value (Strike Price)].  Now the premium on the call is usually determined by volatility and time left.  The higher the volutility the higher the price of the call/put (check out Google options vs. Bank of NY options).  Put can have a negative time value as you are forgoing the money  so it has to be priced it.  I hope that helps.  If you need anymore help just shoot me an email.\n\nRival
780501
Yahoo haven't dealt with a market ticker change particularly well.   They seem to have maintained a page for the ticker NGT.L ; when it's actually NG.L  (or NG-.L on some sites) you're after.\n\nhttp://uk.finance.yahoo.com/q?s=NG.L&m=L&d=  is what you want and the price seems accurate there. \n\nOr try Interactive Investor instead, it's much better:-\nhttp://www.iii.co.uk/investment/detail?code=cotn:NG-.L&it=le
173968
Yahoo finance.  Got to bonds/rates
306389
Try http://www.optionsxpress.com
370347
28.9124 Euros at time of answering.\nUse: http://uk.finance.yahoo.com/currency-converter/convert?amt=20&from=GBP&to=EUR for more upto date answers.
1170586
What you are hoping to capture by buying a calendar spread is the decay of the first expiring option relative to the decay of the second. Read "Options as a Strategic Investment".\n\nA short term option loses its time value faster than a longer term option. So, if the decay on the longer is a penny a day...and the decay on the shorter option is 1/8 a day...you are capturing 11 1/2cents per day and protecting yourself in case of a big market move. Is it a given that you'll make money??? Absolutely not. Every time you think that, think to yourself "there are a million other people out there that have thot about this for at least 25 years...chances are I am not thinking anything original" !