What is the fair price of company stock? - prime rate forecast
Gulf Oil Company is now trading at $ 100.
Analysts concluded that if the hurricane hits this year
Gulf Oil stock prices will be $ 80 years later
and $ 160 otherwise.
They also provide that if the hurricane hits this year
GulfDriling the stock price is the year of $ 60 later
and $ 180 otherwise.
Meteorologists expect a 50% chance of a hurricane.
The first type is 10% per year.
What is the current price GulfDrilling?
Saturday, February 20, 2010
Prime Rate Forecast What Is The Fair Price Of Company Stock?
1 comment:
Hmmm, let's see if I repeat with the GO and GD cash. If I x shares of DG and invest the money and the consumer market, then at the end of the year, I:
80A + 1.1b, when Hurricane
Hurricane is not 160 + 1.1b
So:
80A + 1.1b = 60
160 + 180 = 1.1b
After deducting from each other, we find:
80A = 120, then a = 3 / 2
, pluggin which tells us that b = -60/1.1
So that the price of Di-S should be 3 / 2 times the price of the GO 150 and up = b = -60/1.1.
Thus, at a cost of di-s should be 150 - 60/1.1 = 95.45 $
I do not use the probability that a hurricane does not believe in my opinion, when it was necessary.
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