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Q1: IHNI is currently trading at $52.00 and pays a continuously com- pounded dividend of...

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Q1: IHNI is currently trading at $52.00 and pays a continuously com- pounded dividend of 1.25%. The risk free rate is 2.50%, and IHNI has a daily volatility of 0.53%. Assume a year has 360 days (and a month has 30 days). Use the replicating porfolio method with u = er-sT+oyt d = c(n-3)T-ovi to price a European style call option expiring in 10 months with a strike price of 53.00. A) C = $1.81. A = 0.10. B = -18.98 = = B) C = $2.13. A = 0.17. B = -22.33 C) C = $2.88. A = 0.64. B = -30.15 DC D) C +1.71, - 0.38, -17.86 ) E) C 82 03, . 15. B - 21.21 .. Q1: IHNI is currently trading at $52.00 and pays a continuously com- pounded dividend of 1.25%. The risk free rate is 2.50%, and IHNI has a daily volatility of 0.53%. Assume a year has 360 days (and a month has 30 days). Use the replicating porfolio method with u = er-sT+oyt d = c(n-3)T-ovi to price a European style call option expiring in 10 months with a strike price of 53.00. A) C = $1.81. A = 0.10. B = -18.98 = = B) C = $2.13. A = 0.17. B = -22.33 C) C = $2.88. A = 0.64. B = -30.15 DC D) C +1.71, - 0.38, -17.86 ) E) C 82 03, . 15. B - 21.21

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