What is the estimated value of one share of stock

Assignment Help Finance Basics
Reference no: EM13808425

1. PA stock is selling for $36.60 a share. One $35 call is valued at $1.92 and one $35 put is valued at $.49. What is the value of five call option contracts?

2. A 1-month $25 call option on BRU stock is prices at $3.22. What is the estimated value of one share of stock?

3. A 1-month $30 put option is priced at $2.05. What is the estimated value of one share of stock?

4. HT stock is selling for $23.16 a share, the $25 puts are prices at $2.05, and the $25 calls are priced at $.36. How much will you receive if you write thirty $25 put option contracts?

5. A stock is priced at $26.50 and the risk-free rate of return is 3.5 percent annually. Assume a 1-year $20 call will finish in the money. What is the current value of the call option?

 

 

Reference no: EM13808425

Questions Cloud

Write a paper on wilfred owens futility theme : Write a paper on Wilfred Owen's "Futility" theme and Identify a number of key images in the poem. You may choose any poem from the reading list except for "The Chimney Sweeper".
Critique and analyze at least perform of hamlets : Critique and analyze at least three of the following performances of Hamlet's
Reduce the retail value of the physical inventory to cost : Fuentes Company operates a large discount store and uses the retail method to estimate the cost of ending inventory. Management suspects that in recent weeks there have been unusually heavy losses from shoplifting or employee pilfer- age. Using the r..
Determining the ongoing process improvement : Identify three TQM tools that may be used for ongoing process improvement. Be sure to describe who will use the tool, when it will be used, and what interval and how it will lead to process improvement.
What is the estimated value of one share of stock : 1. PA stock is selling for $36.60 a share. One $35 call is valued at $1.92 and one $35 put is valued at $.49. What is the value of five call option contracts? 2. A 1-month $25 call option on BRU stock is prices at $3.22. What is the estimated value o..
Compare overall performance of three different investments : Which one of the following should be used to compare the overall performance of three different investments?
Probable outcome of not filing the accident report : What is the probable outcome of not filing the accident report on time and with complete honesty?
What is the geometric average return : RedStone Mines stock returned 7.5, 15.3, -9.2, and 11.5 percent over the past four years, respectively. What is the geometric average return?
Write essay about article a nation divided by one language : Write an essay about the article "A Nation Divided by One Language" by James Crawford and "Bilingualism in America: English Should be the only Language" by S. I. Hayakawa.

Reviews

Write a Review

Finance Basics Questions & Answers

  Construct and explain an approach to the acquisition that

the wycombe company is doing well and is interested in diversifying so its been looking around for an acquisition

  What is the cost of capital for an otherwise identical

What is the cost of capital for an otherwise identical all-equity firm? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

  What is the estimated value of a common stock

What is the estimated value of a common stock that had free cash flow last period of $1.45(=FCF0) per year, the cash flow is expected to grow at 16% per year for the next three years then grow at 6% from there into the foreseeable future and th..

  Would a supply chain make sense in regional production

Would a supply chain make sense in regional production as backup facilities to China? For example, having facilities in Europe and South America to become cost effective in competition with Asia should a disaster strike? Explain.

  The difference between total actual overhead cost incurred

question 1 the difference between the total actual overhead cost incurred during a period and budgeted total factory

  Computation of price of the bond

Computation of price of the bond and what rating must Luther receive on these bonds if they want the bonds to be issued at par

  How much does the security cost

A price-linked investment pays $300 if the oil price over the next year increases by more than 5%, an event that can happen with a 55% probability. Otherwise, it pays $60. If the expected return on the security is 12%, how much does the security c..

  Effect of the price increase on firm fcf

Depreciation and amortization charges are $20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of $3,000 for the year. What will be the effect of the price increase on the firm's FCF fo..

  Suppose the bond had been selling at a discount rather than

it is now january 1 2012 and you are considering the purchse of an oustanding bond that was issued on january 1 2010.

  What will be the bonds price

Suppose a ten-year, $1,000 bond with an 8.1% coupon rate and semi-annual coupons is trading for $1,034.69

  Compute the maximum price per share

Newman Manufacturing is planning a cash purchase of the stock of Grip Tool. During the year just completed, Grips earned $4.25 par share and paid cash dividends of $2.55 per share.

  Calculate the unweighted indexes

Calculate the unweighted index using the geometric average and an index value of 1000 at time t. Please help to calculate the unweighted indexes, here are some of the data you may need.

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