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You are able to long or short as many options as you want in Gazprom. These options are traded with strike prices every $5 from $30 to $80 per share. You wish to build a portfolio with the following payoff structure.
Gazprom sells for $50 per share or less = zero payoff
Gazprom sells for $60 per share = $20 payoff
Gazprom sells for $70 per share or more= $30 payoff
Work out how much you need to long or short of puts and calls for each strike value. Show that your selected portfolio does indeed yield the desired payoff profile.
A certain area can be irrigated by piping water from a nearby river. Two competing installations are being considered, for which the following engineering and cost data apply : On the basis of a 10-year life with an interest rate of 12%, determine th..
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alculate the pmt using the two different rates. - Calculate the monthly income by multiplying the rate by the account balance for each different rate.
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A five-year project has an initial fixed asset investment of $270,000, an initial NWC investment of $22,000, and an annual OCF of −$21,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..
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