Sale price of put

Assignment Help Financial Management
Reference no: EM131067986

The common stock of Triangular File Company is selling at $97. A 26-week call option written on Triangular File’s stock is selling for $15. The call’s exercise price is $107. The risk-free interest rate is 11.4% per year. Suppose that puts on Triangular stock are traded. What should a 26-week put with an exercise price of $107 sell for? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Sale price of a put = _______

Reference no: EM131067986

Questions Cloud

Topic such as those used by sei shonagon : Pillow Book Essay. Write a three to four page paper (double-spaced) in which you create a list of items on a topic such as those used by Sei Shonagon (Irritating Things, or Pathetic Things, Why I Like to Travel, etc.). Use the same level of descr..
Purpose of the frame check sequence : Explain the purpose of the frame check sequence (FCS) field in a data link frame trailer.
Which survey item area of concern should be addressed first : What do the survey results show? Analyze and explain the survey results using both numbers and words, and be specific.
Write essay about the radicalism of the american revolution : Write an essay for eight pages about the book "The Radicalism of the American Revolution" by Gordon Wood. Since we only have limited time, please take my assignment only if you read it before, or maybe you are majoring in American Revolutionary Hi..
Sale price of put : The common stock of Triangular File Company is selling at $97. A 26-week call option written on Triangular File’s stock is selling for $15. The call’s exercise price is $107. The risk-free interest rate is 11.4% per year. Suppose that puts on Triangu..
Firm currently has debt outstanding with a coupon rate : A firm currently has debt outstanding with a coupon rate of 8 percent. The firm is obtaining subsidized financing for a new project at a rate of 5.5 percent. The current market rate is 5.8 percent. What discount rate should be used to compute the NPV..
What are at least three international accounting standards : What are at least three International Accounting Standards? Are these standards the same as U.S. standards? Explain your response. Is it necessary to have global standards? Explain your responses.
Multiple operating systems : Do you think that working with multiple operating systems allow a user or business to gain more capabilities from the variety of devices on their network? And does having multiple operating systems make it harder to keep updates current?
Fair value of the constant growth stock valuation model : Suppose a stock pays dividends at the end of each period and a $2 dividend has just been paid. If the dividend growth rate is 3-percent per period and the discount rate is 10.8-percent per period, what is the dividend yield expected over the next per..

Reviews

Write a Review

Financial Management Questions & Answers

  Markets custom application-specific integrated circuits

Electronic Timing, Inc. (ETI), is a small company founded 15 years ago by electronics engineers Tom Miller and Jessica Kerr. ETI manufactures integrated circuits to capitalize on the complex mixed-signal design technology and has recently entered the..

  Explain why naked short option position requires margin

Explain why a naked short option position requires a margin, explain why writing a covered call does not require a margin, and explain why a long option position does not require a margin?

  Manufactures time series photographic equipment

Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt−equity ratio of 0.80. It’s considering building a new $53 million manufacturing facility. This new plant is expected to generate aft..

  Cumulative mark to market

Suppose you sell ten July 2021 platinum futures contracts on this day, at the last price of the day which is 1,427.90 per ounce. Each contract is for 50 ounces. What will your cumulative mark to market be if platinum prices turn out to be $1,430.42 p..

  Discounted cash flow approach-what is its cost of equity

The earnings, dividends, and common stock price of Shelby Inc. are expected to grow at 5% per year in the future. Shelby's common stock sells for $29.50 per share, its last dividend was $1.80, and the company will pay a dividend of $1.89 at the end o..

  Uses payback period criteria of not accepting any project

AMP, Inc., has invested $2,165,800 on equipment. The firm uses payback period criteria of not accepting any project that takes more than four years to recover costs. The company anticipates cash flows of $433,386, $512,178, $562,255, $764,997, $816,5..

  Coupon bonds making annual payments

Cavo Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.5 percent. The current yield on these bonds is 7.85 percent. How many years do these bonds have left until they mature? How would i put this into excel?

  Degree of operating leverage

The CFO of Jupiter Jibs (JJ) expects this year's sales to be $2.5 million. EBIT is expected to be $1 million. The CFO knows that if sales actually turn out to be $2.3 million, JJ's EBT will be $888,000. What is JJ's degree of operating leverage (DOL)..

  Its inventory from one supplier- operating and cash cycle

Carter's Gym purchases its inventory from one supplier. This supplier has offered a 5% discount if Carter's will pay for its purchases within 10 days instead of the normal 32 days. Currently, Carter's cash cycle is 55 days and its operating cycle is ..

  Calculate difference between daily and annual compounding

How much would you be willing to pay for a bond that pays semi-annual coupon payments and has the following characteristics: Calculate the difference between daily and annual compounding, Calculate the RATE given the following characteristics: Calcul..

  Receiving the dividend-what rate of return would you earn

The stock of Cleaning Corp. is currently selling for $25 a share. The company is expected to pay a dividend of $0.75 at the end of this year. If you bought Macbeth stock today and sold it for $29 after receiving the dividend, what rate of return woul..

  Which ratios would a banker be most interested in when

Which ratios would a banker be most interested in when considering whether to approve an application for a short-term business loan? Explain.

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