What is the option time value

Assignment Help Finance Basics
Reference no: EM133057639

A stock's current price is 145.05. A put option with an exercise price of 120 and maturity of 3 months is currently priced at $ 28.83.

What is the option's time value?

Reference no: EM133057639

Questions Cloud

Dividend per share under the new payout policy : Compute the dividend per share under the new payout policy for year 1,2 and3 for an investor who plans to retain his shares rather than sell them back to the co
What is rate-of-return : You purchase a twenty year 5% coupon bond with a yield of 5%. One year later you sell the bond at a yield of 4.5%. What is your rate-of-return?
Calculate the price of the bond : There is a bonus with the following characteristics: nominal value $98.650.000 annual coupon rate 4.5% term 5 years, tir 6.5%
What is the manufacturing overhead cost allocation rate : Actual and budgeted direct labour hours were 25,000 and 30,000 for the period. What is the manufacturing overhead cost allocation rate
What is the option time value : A stock's current price is 145.05. A put option with an exercise price of 120 and maturity of 3 months is currently priced at $ 28.83.
Find full valuation and duration approaches : Using Macaulay's general and closed form formulas, calculate the duration of a 6 percent, $1,000 par bond maturing in three years if the yield to maturity is 10
Which statements regarding the impact of stock split is true : Stockholders' equity also included $21,000 of paid in capital in excess of par value-common. Which statements regarding the impact of stock split is true
New balance discount rate for new projects : The interest costs on debt were expected to be approximately $ 1.2 million per year. The New Balance discount rate for new projects such as this is 11%.
What is a variable cost : What is a variable cost? What is a fixed cost? What is a mixed cost? Pick a type of manufacturing company (Sporting Goods, Clothing, Automobiles, etc)

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!

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