After accounting for the option premium

Assignment Help Financial Management

Reference no: EM131077975

Jones Ltd.. will receive SF2,000,000 in 30 days. Use the following information to determine the total dollar amount received (after accounting for the option premium) if the firm purchases and exercises a put option: SHOW ALL WORK Exercise price = $.61 Premium = $.02 Spot rate = $.60 Expected spot rate in 30 days = $.56 30 day forward rate = $.62

Reference no: EM131077975

Questions Cloud

What is price of two period put option on zero coupon bond : The current one-period interest rate is 8% and has an equal probability of going up or down by 10%. What is the price of a two period put option on a zero coupon bond that matures in 4 periods, X=0.9. What is the price of a two period put option on a..

Economic order quantity-current inventory policy : Viking Manufacturing, Inc. currently begins each sales cycle with 12,500 vacuum cleaners in stock. This stock is depleted at the end of each sales cycle and then reordered. What is the total cost of current inventory policy? What is the restocking co..

Data is loaded into the ERP system from the data warehouse : In load step of the ETL process, data is loaded into the ERP system from the data warehouse. All of these statements are true. Unstructured data is tagged with metadata in the extract step of the ETL process. During the testing step of the ETL proces..

Make capital budgeting decisions : You have been able to make smart business decisions and now own a company of your own. PREFERRED STOCK – Can be issued at $75 per share par value. It will pay an annual dividend of $10. Cost of issuing & selling this stock would be $3 per share. Your..

After accounting for the option premium : Jones Ltd.. will receive SF2,000,000 in 30 days. Use the following information to determine the total dollar amount received (after accounting for the option premium) if the firm purchases and exercises a put option: SHOW ALL WORK Exercise price = $...

What is the effective financing rate : Assume the U.S. interest rate is 7.5%, the New Zealand interest rate is 6.5%, the spot rate of the NZ$ is $.52, and the one year forward rate of the NZ$ is $.50. At the end of the year, the spot rate is $.48. Based on this information, what is the ef..

Calculate the annual payment required : J Manufacturing signed an agreement on January 1, 2015 to lease a Machine to ABC Company. The following information relates to this agreement. The asset will not revert back to the lessor at the end of the lease at which time the asset is expected to..

Preferred to internal rate of return for capital budgeting : Net present value is preferred to internal rate of return for capital budgeting decisions because the internal rate of return for a project is different for each firm. the net present value is the only method that allows you to determine which indepe..

What is the markup percentage for braided belts : What is the mark up percentage on an item that costs$183 a dozen and retails for $30.00 each. Determine the cost of a jacket that retails for $249 and has a 49% markup. What is the markup percentage for braided belts that cost $78.00 a dozen and reta..

User Account

All Pages