A stock price is currently $48. At the end of next six months it will be either $80 or $20. The risk-free rate of interest with continuous compounding is 12% per annum. The exercise price of a six-month European call option on this stock is $50. To price this option you replicate this option, forming a portfolio of units of the stock and shorting one call option. The price (premium) of this call option is

Amuscle thats keeping you from having  pain.

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

Took the words right out of my fingers

One stage of the union organizing process involves the legal requirement that at least 30% of the employees in a potential bargaining unit express a desire for union representation by signing union authorization cards.