What is the option exercise value

Assignment Help Finance Basics
Reference no: EM131928616

Question: A 6 - month call option on Meyers Inc.'s stock has a strike price of $45.00 and sells in the market for $8.25. Meyers' current stock price is $49.00. What is the option's exercise value? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131928616

Questions Cloud

How much portfolio invested in the stock : A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund.
What is BEAs unlevered beta : What is BEA’s current levered beta? What is BEA’s unlevered beta?
The risk measure in security market line equation : The percent of return that comes from stock market movements is measured by. The risk measure in the Security Market Line equation is
Find the value of an american put option : Find the value of an American put option using the binomial option pricing model.
What is the option exercise value : A 6 - month call option on Meyers Inc.'s stock has a strike price of $45.00 and sells in the market for $8.25. Meyers' current stock price is $49.00.
Find the value of the payment stream : What payment today (Year 0) would be needed to accumulate the needed $20,000? (Assume that the payments for Years 1 through 5 remain the same.)
How much is the restaurant contributing to covering the cost : A restaurant sells Pizza at a rate of $10/slice. Expenses for restaurant include raw material for pizza at $5 per slice. $100 as monthly insurance.
Risk which affect all companies-but to varying degrees are : Possible bankruptcy of Pear Fruit Company because of law suits is an example. Risk which affect all companies, but to varying degrees are
Best estimate of the company cost of equity : If the stock sells for $32 per share, what is your best estimate of the company’s cost of equity?

Reviews

Write a Review

Finance Basics Questions & Answers

  Why are equity earnings usually greater than cash flow

Why are equity earnings usually greater than cash flow generated from the investment? How can these equity earnings distort profitability analysis?

  What is the value of the stock

a. If the required return for Superior is 21 percent, what is the value of the stock?

  A consulting firm and decides to leave his current job

Sam Smith is currently employed as a mechanical engineer and is paid $65,000 per year plus benefits that are equal to 30% his salary. Sam wants to begin a consulting firm and decides to leave his current job.

  Find the average debt-equity ratio of the firms

You are trying to estimate a price per share on an initial public offering of a company involved in environmental waste disposal.

  Compute the current and quick ratio

The Jamesway Printing Corporation has current assets of $3.0 million. Of this total, $1.0 million is inventory, $0.5 million is cash, $1.0 million is accounts receivable, and the balance is marketable securities. Jamesway has $1.5 million in current ..

  The finance department of a large corporation has evaluated

the finance department of a large corporation has evaluated a possible capital project using the npv method the payback

  What dangers are encountered by mortgagees

What dangers are encountered by mortgagees and unreleased mortgagors when property is sold "subject to" a mortgage?

  Consumption allowances actually increase by 10 percent

Assume that some of the data provided in problem 1 change next year. Specifi cally, government expenditures increase by 10 percent; gross private domestic investment declines by 10 percent; and imports of goods and services drop to $6 billion.

  Compute nike’s long-term debt to total asset ratio

Compute NIKE's long-term debt (include deferred income taxes and other long-term liabilities) to total asset ratio for 2008 and 2009. Discuss the change.

  Price of one share of stock

The dividend is expected to grow at the rate of 4% per year. If the appropriate discount rate for this investment is 14%, what is the price of one share of this stock?

  Suggest the financial ratio that most financial analysts

Suggest the financial ratio that most financial analysts would use to evaluate the financial condition of the company of your choice

  Find the price of two year american put option

A stock price is 80. The price is expected to increase by 20% or decrease by 30% every year. the RFR is 9 per annum with continuous compounding . Using the two-step binomial tree find the price of its two year American put option with a strike pri..

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