Strike price and five months to maturity

Assignment Help Business Economics
Reference no: EM131096762

A call option is currently selling for $5.4. It has a strike price of $80 and five months to maturity. What is the price of a put option with a $80 strike price and five months to maturity? The current stock price is $82.04, and the risk-free interest rate is 6.8 percent

Reference no: EM131096762

Questions Cloud

What is that cost to the us firm in six months : You learned from week 6 that both the money market hedge and the forward hedge lock in the cost of the machinery. What is that cost to the U.S. firm (in dollars) in 6 months? Show your work.
Introduction to business communication : Complete the Pearson interactive tutorial, "Introduction to Business Communication." This is referenced on the Background page as Pearson 2015
Why the effectiveness of fiscal policy depends : Discuss how and why the effectiveness of fiscal policy depends upon the slope of the LM curve. Hint: Discuss how the behavioral sensitivities (c1, and c2) determines the LM slope, and how changing c1, and c2 influences the fiscal policy effectiveness..
Essential rules regarding contractual consideration : Explain this statement and include in your discussion the essential rules regarding contractual consideration.
Strike price and five months to maturity : A call option is currently selling for $5.4. It has a strike price of $80 and five months to maturity. What is the price of a put option with a $80 strike price and five months to maturity? The current stock price is $82.04, and the risk-free interes..
Discuss the product life cycle : Discuss the product life cycle and use the nkolwledge to crituque dvd players, weriless mobli phones and pizza interms of the product life cycle.
Identify any major market failures : Supporters of accelerated depreciation in 1981 acknowledged that it favored heavy industry ("smokestack America") but argued that this was desirable. Why do economist tend to look askance at such arguments? Can you identify any major market failures?..
Women and the workplace : The role of women in the workplace is changing every year. In many countries such as the United States, women are entering occupations that were traditionally filled only by men and are becoming more visible at managerial and decision-making level..
Calculate the profit-maximizing equilibrium price : A market analysis conducted by SUNY Canton suggests the following market demand and marginal revenue relations: Public Demand: PPU = 225 - 0.005QPU and MRPU = 225 - 0.01QPU Student Demand: PST = 150 - 0.01QST and MRST = 150 - 0.02QST Total fixed cost..

Reviews

Write a Review

Business Economics Questions & Answers

  Standard were established to meet the efficiency criterion

If you were responsible for setting the NAAQS for lead, what key determinants would you consider if the standard were established to meet the efficiency criterion. Be sure to itemize separately the benefits and costs associated with your decision.

  Agricultural cooperative association for citrus growers

Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below. What are your predictions? For each part, sketch a ..

  Define a fair decision rule as rule

When several people have to decide about a single yes/no issue*, the natural decision rule to use is the majority rule. it is possible that the majority's opinion will be accepted on all topics and the minority's opinion will not be accepted on any t..

  Economy''s supply and demand

How does this policy involve the supply and demand for loan able funds. What occurs to the equilibrium interest rate.

  Illustrate what can be said about utilization of resource

Illustrate what can be said about the utilization of resources when 20 airplanes and 20 buses are produced. What is the opportunity cost of increasing the production of airplanes from 50 to 60? From 0 to 10 airplanes.

  Retailer to carry specific product-provide specific service

Write a letter of proposal to a local retailer to carry a specific product or provide a specific service. Gather data from friends, family, coworkers and other target market consumers to justify the need for the product in this specific retail locati..

  Discuss the best fit of multinational firm to its worldwide

discuss the best fit of the multinational firm to its worldwide industry environment and the changing role of central headquarters as an organization expands into other countries.

  Explain the relationship between savings and investment

What is money supply? Explain the tools Bank of Canada can use to alter the amount of money in circulation. Why is the money demand curve downward sloping? Explain the relationship between savings and investment.

  Estate bubble by increasing banks required reserve ratio

In recent years, China’s central bank has been attempting to combat a significant real estate bubble by increasing banks’ required reserve ratio. What are Chinese policy makers seeking to achieve?

  Illustrate a firm in monopolistic competition

Illustrate a firm in monopolistic competition that does not make a profit but rather a loss. Now illustrate how firm exit will change demand in the long run, allowing at least some firms to break even.

  People would consume more and more steaks

If a restaurant served free steaks, people would consume more and more steaks until their ________ fell to zero. If food were free in your school cafeteria, you would keep eating until. Suppose you buy eight pairs of shoes every spring. This year, yo..

  If social security were considered part of general budget

If Social Security were considered part of the general budget then,

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