Can you solve the following problems in the attachment?Derivatives and Alternative Investments AssessmentResources Derivatives and Alternative Investments Assessment Scoring Guide. APA Style and Format. Writing Feedback Tool.In preparation for applying investment and portfolio management concepts and techniques to the project, complete the following problems from your Investments text:Problems 10 and 11 on page 762 of Chapter 21.Problems 1 and 2 on page 796 of Chapter 22.Each solution should include a statement of the problem and the accompanying answer. Paraphrase all responses and avoid simply restating what is written in the textbook. For numeric solutions, provide full documentation of the process used to reach the solution. For problems that require additional analyses, use information from the textbook to inform your analysis, incorporating creativity, critical thinking, and real-life perspectives.
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10. Calculate the value of a call option on the stock in the previous problem with an exercise
price of 110. Verify that the put-call parity theorem is satisfied by your answers to Problems 9
and 10. (Do not use continuous compounding to calculate the present value of X in this example
because we are using a two-state model here, not a continuous-time Black-Scholes model.)
11. Use the Black-Scholes formula to find the value of a call option on the following stock:
1. Joan Tam, CFA, believes she has identified an arbitrage opportunity for a commodity as
indicated by the following information:
a. Describe the transactions necessary to take advantage of this specific arbitrage opportunity.
b. Calculate the arbitrage profit.
2. Michelle Industries issued a Swiss franc–denominated 5-year discount note for SFr200
million. The proceeds were converted to U.S. dollars to purchase capital equipment in the United
States. The company wants to hedge this currency exposure and is considering the following
alternatives:
At-the-money Swiss franc call options.
Swiss franc forwards.
Swiss franc futures.
a. Contrast the essential characteristics of each of these three derivative instruments.

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