1. Dividend Discount Model
Calculate current stock price using the Dividend Discount Model
• D0 = 100 (dividend value)
• g = 2% (the constant growth rate in perpetuity expected for dividends)
• r = 4% (the constant cost of equity capital for the company)
2. Single-Index Pricing Model
Implement the Single-Index Model for pricing IBM stock.
• Data source: Download data from an appropriate financial website such as Google Finance, Yahoo Finance, Quandl, CityFALCON, or another similar source.
• Software used for analysis: Excel
• Market index considered in the analysis: S&P 500
• Comment the results
3. Black-Scholes Model
Implement Black-Scholes Model for pricing an option on commodity futures.
F = 49 USD (forward Central Appalachia coal price per short ton)
X = 49 USD (exercise price)
T = 1 year (time to expiry)
Sigma = 25% (volatility)
r = 0.1% (risk-free rate)
Calculate call option price and put option price.
Calculate call option price and put option price if the exercise price is 50 USD while forward coal price is 45 USD.
36 freelancers are bidding on average $352 for this job
Hi I have been working as Financial Analyst since 10 years and possess professional working experience. Please share your task details as I could start and finish it soon. Regards, Rakesh
If you mean using Excel, is it to be coded in VBA? I have experienced to code Black-Scholes in R programming. I can translate it into VBA if needed. I can deliver the project in five days. Thank you.