User Account

All Pages

Money option on pcg

Assignment Help Finance Basics
Reference no: EM133116907

Pacific Gas and Electric (ticker: PCG), the largest utility company in the state of California, filed for bankruptcy on January 29th, 2019 due to the anticipation of nearly $30 billion in potential liability claims for deadly wildfires that may have been caused by its electricity power generating facilities. Assume PCG stock is currently trading at $12.23.

Suppose I think that the stock price of PCG will fall to zero over the next year due to the wildfire damages claims.

What kind of at-the-money option on PCG should I purchase today in order to profit from this view?

Reference no: EM133116907

Questions Cloud

Rates on medium and long-term maturities : Given the indicated maturities listed in the following table, assume the following yields for US Treasury securities:
Long-term rates and short-terms rates : Which of the following best explains why a firm that needs to borrow money would borrow at long-term rates when short-terms rates are lower than long-term rates
Discuss the values and principles that should guide manager : Discuss the values and principles that should guide a manager of a levered company."Debtor's Prison?
What annual rate of simple interest was charged : Amber was charged interest of $92 for a loan amount of $2,200 that he borrowed for 130 days. What annual rate of simple interest was charged
Money option on pcg : What kind of at-the-money option on PCG should I purchase today in order to profit from this view?
What is the current price of the bond-marco chip inc : Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 12 years and a yield to maturity of 9.30 percent
Impact of interest rates on financial decisions : The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (Credit Card Act) made major changes in the way and amount of information that is pro
What is the credit spread of the gme bond : The current yield of the GME bond equals 9.67%, whereas the current yield of the 2-year T-note with a 1% coupon rate is 0.87% and the current yield of the 2-yea
Calculate the effective rate of the loan : Orange Company holds a loan with an interest rate of 10.00% compounded quarterly. Calculate the effective rate of the loan

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