Consider a European call option on a stock, with 1 year to expiration, and a strike price of 50. Suppose that the risk-free rate is 4% APR with semiannual compounding, and that the call premium (or price) is $1. a) What price must the stock be in 1 year so that the profit to the long call is the same as the profit to the short call? b) Does anything change if the stock pays dividends?

Should the investment be made : A company is planning to invest $ 550000 in machinery having an estimated life of 5 years. The machinery is expected to save $ 125000 each year. What will be the NPV if the discount rate is 10%? Should the investment be made? |

How is the voltage divided among resistors in parallel : How is the voltage divided among resistors in parallel and What happens to resistance when resistors are connected in parallel |

Find the price of a call option on the stock : The current price of a stock is $20 . In 1 year, the price will be either $26 or $16. The annual risk -free rate is 5%. Find the price of a call option on the stock that has a strike price of $21 and that expires in 1 year. (Hint: Use daily compou.. |

State a net ionic equation for the reaction that occurs : Write a net ionic equation for the reaction that occurs when cobalt(II) carbonate (s) and excess hydrochloric acid (aq) are combined. |

Consider a european call option on a stock : Consider a European call option on a stock, with 1 year to expiration, and a strike price of 50. Suppose that the risk-free rate is 4% APR with semiannual compounding, and that the call premium (or price) is $1. |

What is next year dividend payment : Briley, Inc., is expected to pay equal dividends at the end of each of the next two years. Thereafter, the dividend will grow at a constant annual rate of 5 percent, forever. The current stock price is $38. |

Design op-amp astable multivibrator to have output frequency : Design an op-amp astable multivibrator to have an output frequency of 400Hz and the frequency should be adjustable by plus or minus 20%. Use a 741 op-amp with supply of plus or minus 18 volts. |

What is the horizontal range of the balls travel : You then kick the ball with the same initial velocity and at the same angle to the horizontal. This time, however, you kick it up a 15 degree slope. What is the horizontal range of the ball's travel |

State an net ionic equation for the reaction : Write a net ionic equation for the reaction that occurs when zinc sulfide (s) and excess hydriodic acid (aq) are combined. |

## Information about stock splitSupposing that the stocks split will have no effect on the total market value of its equity, what will be the company's stock price following the stock split? |

## What is the portfolio weight of stock cKate invested $7,400 in stock A, $11,200 in stock B, and $3,900 in stock C. What is the portfolio weight of stock C |

## What is the optimum order sizeMassa Machine Tool expects total sales of $15,000. The price per unit is $6. The firm estimates an ordering cost of $9.96 per order, with an inventory cost of $.84 per unit. What is the optimum order size? |

## Objective type questions on portfolio managementObjective type questions on portfolio Management and What is the best estimate of the current stock |

## Inflation plusThe "Inflation-Plus" CD is the safer investment because it guarantees the purchasing power of the investment |

## Determining the retirement annuityWhat annual contributions to retirement fund will let you to receive the $60,000 annually? What annual contributions are needed if the contributions are made at the beginning of each year? |

## The important points with optimistic entrepreneursAssume you have decided to become a venture capitalist, but you are worried about capital losses and lower rate of return. |

## What is the pv of the projecta project has a forecast cash flow of $128 in 1 year and $139 in year 2. The interest rate is 7%, the estimated risk premium on the market is 12.00% and the project has a beta of .68. |

## What is the pv of your projectGiven the above information about PhelpCo, what is the appropriate discount rate that should be applied to the cash flows of your project? |

## Which loan has the lowest effective annual rateLocal Bank down the street is also offering a loan at 10% where the payments are made quarterly. Which loan has the lowest effective annual rate? |

## Objective type questions on capital structureObjective type questions on cost of capital and capital structure and Which one of the following means of management compensation is designed to help eliminate the agency problem |

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