The price of the corresponding call option is 285 according

Assignment Help Finance Basics
Reference no: EM13619298

A put option on a stock with a current price of $37 has an exercise price of $39. The price of the corresponding call option is $2.85. According to put-call parity, if the effective annual risk-free rate of interest is 4% and there are three months until expiration, what should be the value of the put?

Reference no: EM13619298

Questions Cloud

A particle rotates in a circle with a centripetal : a particle rotates in a circle with a centripetal acceleration of 18.36 meters per second squared. if the radius is
You have the opportunity to purchase mineral rights to a : you have the opportunity to purchase mineral rights to a property in north dakota with expected annual cash flows of
A 017hp electric motor on a water well pumps water from : a 0.17hp electric motor on a water well pumps water from 42.64m below the surface. the density of water is 1.0 kgliter.
Nico makes annual end-of-year payments of 504371 on a : nico makes annual end-of-year payments of 5043.71 on a four-year loan with an interest rate of 13 percent. the original
The price of the corresponding call option is 285 according : a put option on a stock with a current price of 37 has an exercise price of 39. the price of the corresponding call
Chips home brew whiskey management forecasts that if the : chips home brew whiskey management forecasts that if the firm sells each bottle of snake-bite for 20 then the demand
Assume that the average firm in your companys industry is : assume that the average firm in your companys industry is expected to grow at a constant rate of 7 and that its
Ethical and legal issues in health care organizations the : ltbrgtthe final project should demonstrate an understanding of the reading assignments class discussions your own
Image segmentation by matlab hi therewhat i need in this : hi there ltbrgt ltbrgtwhat i need in this order is that quotimage segmentationquot. choose any two obvious photos and

Reviews

Write a Review

Finance Basics Questions & Answers

  Computing the average real return for treasury bills

Computing the average real return for treasury bills and Calculate the average real return for Treasury bills over this period

  What type of strategy is the investor using

If an investor bought 2 XYZ Feb 60 call at 2 and Sells 2 XYZ Feb 70 calls at 1. What's the gain or loss on the contracts at a market of 75? What type of strategy is the investor using?

  Will fox accept the project

Fox uses the net present value method and has a discount rate of 11.25%. Will Fox accept the project?

  The time from acceptance to maturity on a 1000000 bankers

the time from acceptance to maturity on a 1000000 bankers acceptance is 120 days. the importers banks acceptance

  Which of the following projects should the firm accept

All of Division A's projects are equally risky, as are all of Division B's projects. However, the projects of Division A are less risky than those of Division B. Which of the following projects should the firm accept?

  Costs result from production of defective parts

Not only customers, but stockholders, suppliers, and others, are among the _________ whose values must be protected in making ethical decisions concerning the quality of products.

  What is it selling for today

Bark Corporation's 10% coupon rate bond was issued for 30 years 25 years ago at a par value of $1000. Today's interest rate is 10%, what is it selling for today?

  What is the cost of capital for this project

The debt-equity ratio is .65 and the tax rate is 40 percent. What is the cost of capital for this project?

  Define the term economic value added (eva)

How do managers supplement the NPV analysis of a project to gain a better understanding of a project?    Define the term economic value added (EVA).

  Why would a financial manager use the overall cost

1.Why would a financial manager use the overall cost of capital for investment decisions when the specific decision under consideration may be funded by only one source of capital, (e.g., debt or equity

  Describe financial ratios

You have been given financial statements and asked to analyze financial performance of your division. Other managers have suggested you use financial ratios in your analysis.

  Formulate an argument

Formulate an argument for or against this statement. Write about type of employee turnover and how company staffing could overcome the turnover issue.

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