Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A. A call option matures in 6 month. The underlying stock price is $50 and the standard deviation of tocks return is 14 percent per year. The risk free rate is 5% per annum.
The exercise price is $60. What is the price of the call option? ( Show all workings)
B. Fill in the blanks with the correct terms which relates to option contracts.
1. The rights to sell an underlying asset is known as a ___________ option?
2. If the options contract allows you to exercise it only on the maturity date, it is know as a __________ option.
3. The price at which an option seller sell you an option contract is known as option___________.
4. Intrinsic value lus time value is equal to ____________ value of the option.
5. When you buy a share of stock and buy a put otion on the same share of stock it is known as ______________.
You are saving money to buy a car. If you save $300 per month starting one month from now at an interest rate of 12%, how much will you be able to spend on the car after saving for 5 years?
First National Bank has made a 5-year, $100 million fixed-rate loan at 10%. Annual interest payments are $10 million, and all principal will be repaid in year 5. The bank wants to swap the fixed interest payment into floating-rate payments. If the ba..
What is XYX's cost of equity before the change in capital structure and what will be cost of equity of XYZ under the new capital structure?
The company HJK wants to issue some shares with subscription rights.
Bond J has a coupon rate of 4 percent and Bond K has a coupon rate of 10 percent. Both bonds have 13 years to maturity, make semiannual payments, and have a YTM of 7 percent. If interest rates suddenly rise by 2 percent, what is the percentage price ..
Which of the following markets is least liquid? Which of the following is true of a financial derivative?
Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash fl..
Giant has preferred stock selling for 123.3 percent of par that pays a 11.7 percent annual coupon. What would be Giant's component cost of preferred stock?
A company wishes to explore the effect on its cost of capital of the rate at which the company pays taxes. the firms wishes to maintain a capital structure of 25% debt, 15% preferred stock, and 60% common stock. Can someone please explain me how to s..
If the required return on the Warf stock is 13%, what will a share of stock sell for today? How about the end of the fifth year?
A trader opens a margin account and purchases 500 shares of Google at $40 per share. The initial margin requirement is 50%. If price increases to $50 per share, how many more shares she can buy by borrowing more from her broker?
Ultra Fine Furnishings is in the process of selling its peripheral businesses and focusing on its upscale clients.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd