What is the market price of zero-coupon bond

Assignment Help Financial Management
Reference no: EM132049643

Netflix is selling for $100 a share. A Netflix call option with one month until expiration and an exercise price of $111 sells for $2.10 while a put with the same strike and expiration sells for $12.12.

a. What is the market price of a zero-coupon bond with face value $111 and 1-month maturity? (Round your answer to 2 decimal places.)

Market price=

b. What is the risk-free interest rate expressed as an effective annual yield? (Round your answer to 2 decimal place.)

Risk free interest rate =

Reference no: EM132049643

Questions Cloud

How much revenue will appear in the company income statement : How much revenue will appear in the company's income statement in the first year using the percentage-of-completion method
What should logically happen to the spot exchange rates : Assume the following information for a bank quoting on spot exchange rates. what should logically happen to the spot exchange rates?
Find the number of pairs shipped : Find the number of pairs shipped from each warehouse to each outlet to minimize the shipping costs. What is the Minimum shipping cost?
What is the maximum possible yield for the trust fund : What is the maximum possible Yield for the trust fund?
What is the market price of zero-coupon bond : What is the market price of a zero-coupon bond with face value $111 and 1-month maturity?
What additional information can you provide : What additional information and/or insights can you provide to expand the summarized consent? What one or more additional and relevant sources can you share?
Calculate the amount at which lincoln should record the note : Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2013
Certificate of deposit that pays compounded interest : Find the future value of a $12,000 Certificate of Deposit that pays compounded interest every three months at the rate of 8% per year.
Speculative trade on your expectations of exchange rate : If you conduct a speculative trade on your expectations of exchange rate change, and your expectations are correct,

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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