How much you have to borrow to establish a synthetic call

Assignment Help Finance Basics
Reference no: EM132611773

The current stock price is $119.46. It may increase to $236.06 or decrease to $59.56 in 4 months. The risk-free interest rate is 0.03 per month. If the exercise price of a call option is $132.68, how much you have to borrow to establish a synthetic call?

Reference no: EM132611773

Questions Cloud

What are the forward price and the initial value : (a) What are the forward price and the initial value of the forward contract?
Calculate the npv of the project using fte approach : -If the cost of unlevered equity is 13%, calculate the NPV of the project using APV approach.
Determine the balance in the capital dividend account : During 2016, the Company received a capital dividend of $25,000. Determine the balance in the capital dividend account at December 31, 2019
What is the put premium : The risk-free interest rate is 0.053% per month. If the exercise price is $777, what is the put premium?
How much you have to borrow to establish a synthetic call : The risk-free interest rate is 0.03 per month. If the exercise price of a call option is $132.68, how much you have to borrow to establish a synthetic call?
What is the coupon amount if the bond is priced to sell : The bond is callable at $1,117. What is the coupon amount if the bond is priced to sell at par?
What is the stock price on the cum-dividend date : The stock price on the ex-dividend date is $175.43. If the tax rate on dividend incomes is 0.37, what is the stock price on the cum-dividend date?
Calculate the unrealized gains or losses : Calculate the unrealized gains or losses and prepare required adjusting entry(ies) for Naiga Corp. on December 31, 2021
Essay on an aspect of business ethics : Essay on an aspect of professional/business ethics - Explain how social responsibility and corporate governance impact ethical decision making

Reviews

Write a Review

Finance Basics Questions & Answers

  Give the names ticker symbols and betas for each firm you

you will be coming up with your very own stock portfolio and calculating a cost of equity capital based on the

  Explain how could you address investment risk in your plan

Explain how you would choose to invest your retirement savings? Why did you choose that option(s)?

  Explain the mechanism that restores the balance of payments

Explain the mechanism that restores the balance-of-payments equilibrium when it is disturbed under the gold standard.

  How the current processes used by rating agencies

From the first e-Activity, discuss how the current processes used by rating agencies could be improved. Provide specific examples to support your response.

  Computing annual interest rate compounded monthly

Jack has a balance of $1276.53 on a credit card with an annual percentage rate of 15.2%. Find out the amount applied to reduce the principal in this statement. Show work.

  Minimum quantity of subassemblies help

1.  What options are open to Coral to address this problem? 2.  How would reducing the minimum quantity of subassemblies help? 3.  What are the costs of carrying excess items in inventory at each stage?

  What are the operating cash flows in year

a. What are the operating cash flows in each year? b. What are the total cash flows in each year?

  Determine the break-even level of output for each and every

the management of a firm wants to introduce a new product. the product will sell for 6.50 a unit and can be produced by

  What would franklins monthly mortgage payment be

Franklins bank has offered him a standard 30 year old mortgage with a 5.7% nominal interest rate. what would Franklins monthly mortgage payment be?

  What is the expected gainloss from the forward hedging if

cray research sold a super computer to the max planck institute in germany on credit and invoiced euro10 million

  Black feminism-womanist and white feminist movement

What was the relationship between black feminism/womanist and the white feminist movement?

  When computing the net present value of the project what is

weichman inc. has provided the following data concerning an investment project that has been proposedinitial

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!

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