What is the time value of the put option

Assignment Help Finance Basics
Reference no: EM13888828

Put option has a premium of $3.50 with a strike of $52. The stock currently is priced at $50.

What is the intrinsic value of the put option? What is the time value of the put option?

Reference no: EM13888828

Questions Cloud

Safety-critical software systems : Identify six consumer products that are likely to be controlled by safety-critical software systems.
Important in most sociotechnical systems : 1. Suggest six reasons why software dependability is important in most sociotechnical systems. 2. What are the most important dimensions of system dependability?
Calculate the hedge effectiveness of the volatility trading : Calculate the Hedge Effectiveness of the volatility trading implemented using the following daily P/L data. Please show work (formula used).Future Price
Specify the required reliability for a system : Giving reasons for your answer, choose a reliability metric that might be used to specify the required reliability for such a system.
What is the time value of the put option : Put option has a premium of $3.50 with a strike of $52. The stock currently is priced at $50. What is the intrinsic value of the put option? What is the time value of the put option?
What is the duration of this set of payment : A pension fund must pay out $2 million in one year, $5 million the following year, and then $4 million the year after that. If the discount rate is 6%, what is the duration of this set of payments?
Compute the markup percentage and target selling price : Compute the markup percentage and target selling price that will allow Robo to earn its desired ROI of 30% on this new component.
Products can be classified as either consumer or business : 1.Products can be classified as either consumer or business products. How would you classify the following products?
The relation between the flow rate and the pressure gradient : A fluid flows axially between two concentric circular cylinders. The inner cylinder has a radius of "a" and the outer radius is "b". For fully developed flow determine: The relation between the flow rate and the pressure gradient

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the weighted average cost of capital

Its pretax cost of preferred equity is 7%, and its pretax cost of debt is 5%. If the corporate tax is 35%, what is the weighted average cost of capital?

  What was net capital spending for 2009

The company's 2009 income statement showed a depreciation expense of $805,000. What was net capital spending for 2009?

  What are the advantages blades could gain

What long-range plans other than establishment of a subsidiary in Thailand are an option for Blades and may be more suitable for the company?

  What is the amount of costly trade credit

Currently, Langley is paying the supplier the full amount due on day 45 but it is considering taking the discount paying on day 10, and replacing the trade credit with a bank loan that has a 10% annual cost.

  Find the cash flows

The following accounts: Net Revenues, Operating Profit, Capital Expenditures, Total Assets, Depreciation and Other Amortization and Amortization of Other Intangible Assets.

  Assignment regarding business financing-capital structure

Businesses have to make many financial decisions that have a direct impact on operations and the ability to successfully compete in the marketplace. Base your writing on the information from the course coupled with information located in the Stray..

  How much will you have 4 years from today

You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $3,500 per year, beginning immediately. You will make 4 deposits in an account that pays 5.7% interest.

  What rate should the firm use to discount the project

If the firm is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flows?

  Compute the percentage total return

Suppose a stock had an initial price of $91 per share, paid a dividend of $2.40 per share during the year, and had an ending share price of $102. Compute the percentage total return.

  What is the cost of the loan

What is the cost of the loan, and how much would you ask for as the loan amount if you had to have $1,000,000?

  Capital market instruments

Insert the following items in the appropriate section of the Statement of Cash Flows and indicate whether this increases or decreases cash flow:

  Determine the financial statement disclosures

Andrews, CPA, has been engaged to audit the financial statements of Broadwall Company for year ended December 31, 20X1.

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