What is the intrinsic value of this call option

Assignment Help Accounting Basics
Reference no: EM133063069

Question - A one-month American call option on Home Depot common stock has a strike price of $70. The option premium is $3.48. The stock price currently is $50.16. What is the intrinsic value of this call option?

Reference no: EM133063069

Questions Cloud

What is the legal age of marriage : Marriage, Divorce, Family Planning, Domestic Violence in Argentina. What is the legal age of marriage?
What is the net operating income : Sales $100,000, Adjusted cost of goods sold $47,000 and selling and administrative expense $31400. What is the net operating income
Second-price auction for a painting : You estimate that other bidders are most likely to value the painting at between $200 and $600. Which of these is likely to be your best bid?
Ontario government policy on the minimum wage : "Depending on whom you listen to, the Ontario government's move to jack up the minimum wage by nearly one-third will either be devastating for businesses and ki
What is the intrinsic value of this call option : Question - A one-month American call option on Home Depot common stock has a strike price of $70. What is the intrinsic value of this call option
Face of globalization : In the face of globalization, Caribbean Economies are increasingly required to become competitive. There are several areas that must be given priority to achiev
What factors influence a firm business risk : What is business risk and how can a firm from them themselves from risk? What factors influence a firm business risk
Gross private domestic investment : Please be sure to use and cite sources in APA format.
Average length of long-distance calls : A random sample of 100 long-distance calls gives a mean of 15 minutes and standard deviation 20 minutes. A 95% confidence interval for the average length of lon

Reviews

Write a Review

Accounting Basics Questions & Answers

  Characteristic of fraud penalties

Question 1: In terms of probability, which of the following taxpayers would least likely be audited by the IRS? Question 2: A characteristic of fraud penalties is:

  Prepare the journal entries relating to land for the years

The tax authorities levy income tax at 30% of taxable profits. Prepare the journal entries relating to land for the years ending 31 December 2013 to 2019

  Conduct and present a ratio analysis of rio tinto

Create a Microsoft Excel spreadsheet to conduct and present a ratio analysis of Rio Tinto (RIO). Follow the embedded example of Ratio Analysis

  Description of securities and exchange commission

Which of the following is not one of the functions of the Securities and Exchange Commission? a. Providing government-backed insurance to purchasers of securities.

  Explain when the testing of accounts receivable would take

The auditor performs tests of controls on the credit-granting process. Explain when the testing of accounts receivable would take place and why.

  Compute the net present value for this investment

The required rate of return is 12%. Compute the net present value for this investment. Would you recommend MXM to build the plant

  What is the amount of its net accounts receivable

Perez, Inc. has Accounts Receivable of $200,000 and an Allowance for Doubtful Accounts of $10,000. What is the amount of its net accounts receivable

  Compute the actual return on plan assets

Given the following items and amounts, compute the actual return on plan assets: fair value of plan assets at the beginning of the period

  What is the book value of the machineries

Question - The machinery account showed a record of RM45,750 and accumulated depreciation ofRM18,300. What is the book value of the machineries

  What is the total transfer tax

No taxable gifts had been made in any prior years. What is the total transfer tax (i.e., gift tax and/or GST) due with respect to these gifts

  Why the common stock investor demands a higher dividend rate

There are two primary means to earn income as a stockholder. The first method is dividend income and the second method is earnings from capital gains.

  Prepare a statement of cash flows

Sold equipment for $2,000. The original cost of the equipment was $133,000 and the related balance in the accumulated depreciation account totaled $119,000.

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