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What else can I help you with?
How do you calculate the centroid of a trapezium when using a geometic picture?
How do you calculate the centroid of a trapezium when using geometic picture
Is it possible to calculate the chromacity coordinates using absorbance values?
Yes, it is possible to calculate the chromaticity coordinates using absorbance values. The best way to calculate the chromaticity coordinates using absorbance values is by using the formula x = x/x+y+z.
How to calculate percentage using mean?
i want to calculate the percentage of mean value of particular data.
What are two possible uses for physics equations?
Using information about a force to calculate the resulting acceleration..Using the change in the volume of a gas to calculate the change in its pressure.
What determines the price an investor will have to pay for an option?
For listed options there is a quote with an ask price and you can buy the option for that price. If the question is how is that price determined that is much more complicated. Professional options traders use a mathematical formula, usually the Black-Scholes formula, to determine the value of an option. There are several inputs to the Black-Scholes which are days to expiration, strike price, volatility, and risk free interest rate. These professionals offer you the option at a certain ask price or will buy the option at a certain bid price. They make a living from the difference between the bid and the ask price and by using certain hedging techniques. So let's say you wanted to buy an option to buy 100 shares of xyz company for the next 6 months at a price of $100 and xyz is currently selling for $97. We know how many days to expiration, about 182, we know the strike price, $100, and we know the risk free interest rate, about 4%. What we don't know is the volatility. The historical volatility can be calculated and used to calculate the options value. However, for various reasons the option pros may feel the volatility the next 6 months will be different than the historical volatility and set the option price accordingly. This is called the implied volatility. Suppose the option price is $5 bid and $5.40 ask. You could bid $5.20 and maybe someone would sell you that option for $5.20. Remember options represent the right to buy 100 shares so you would pay $5.20 X 100 = $520 plus commissions of about $15 for a total of $535 for 1 option and the stock would have to be $105.35 or more in 6 months for this to successful. Dividends during the period also affect option prices but for simplicity I have assumed there are no dividends.
