Mr. Curtis document

Mr. Curtis document Your firm has a well-respected economic research staff. The staff members have been successful in developing econometric models that can predict macroeconomic variables with a surprisingly degree of accuracy. The economic research staff would like to know which variables to monitor if options are ultimately used by the firm. Write a 1-2 page document to Mr. Curtis explaining how the listed variables impact the prices of call options and what the associated theory is behind each relationship: •. Stock price •. Risk-free rate •. Exercise price •. Stock volatility It is also important to recognize if put-call parity conditions are being met; if not, an arbitrage opportunity exists for the firm. In the following situation, identify whether or not an arbitrage opportunity exists if • The call price = $1.15. • Exercise price = $22.50. • Time to expiration = 60 days. • Put price = $0.55. • Annual interest rate = 12%. The stock pays 0 dividends. PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT :)