User Account

All Pages

Calculate the intrinsic value-time value

Assignment Help Finance Basics
Reference no: EM132711551

George bought a 6-month naked put option on XYZ with a strike of $50 and the shares are trading at $48.50, the price of the option was $4.25.

a) Calculate the intrinsic value

b) Calculate the time value.

c) At what price would the shares have to trade for George would start to make money?

Reference no: EM132711551

Questions Cloud

How the performance report of auckland museum would be : How the performance report of Auckland Museum would be different from Meridian Energy (i.e., her current employer). Imagine yourself as Shirin
What is bobby total cost for the bond : On November 24, 2020 Bobby purchases a $10,000 Telus 5% semi-annual bond that matures in March 15, 2028 and pays 101.5.
Which relating to customer accounts of entity b is correct : Which relating to the customer accounts of Entity B is correct? Entity B purchases large pieces of vacant land. It sub-divides this land
Determining the intrinsic value of hoffman inc : Your analysis shows that the firm's growth rate will drop from its current pace by 30% each of the next two years, and then you estimate that dividends
Calculate the intrinsic value-time value : George bought a 6-month naked put option on XYZ with a strike of $50 and the shares are trading at $48.50, the price of the option was $4.25.
What is the discount rate per annum : Brooke has just purchased a bank accepted bill with 180 days to maturity at the price of $48,500. The bank accepted bill has a face value of $50,000.
Find what is value of ending inventory using full costing : During the year, Ceradyne produces 48,500 snow shovels and sells 43,490 snow shovels. What is the value of ending inventory using full costing?
Does Paula have legal claims against Capstone Corporation : Does Paula have any legal claims against Capstone Corporation? What about Paula's actions? Does Paula have a contract with Freddy to purchase the car
What is caroline tax on transaction : The result is that the put buyer chose not to exercise her put. Ignoring commissions, What is Caroline's tax on this transaction?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd