A European call option with a strike price of $110.5 and mat…

A European call option with a strike price of $110.5 and maturity of 7.0 months costs $23.809. The underlying stock price is $128.0. The continuously compounded risk-free rate is 8.75 percent per year. What is the value of a European put option with strike price of $110.5 and maturity of 7.0 months?

Modern Portfolio Managers (MPM) hold a 2.5 million dollar po…

Modern Portfolio Managers (MPM) hold a 2.5 million dollar portfolio of stocks with abeta of 0.95 measured with respect to the S&P 500 index. The current value of a futurescontract on the index is 1109. 3. The multiplier on the futures equals $250. If MPM wishesto increase its systematic risk in its portfolio to 1. 75, how many contracts must it buy orsell?