What is the instrinic value and time value

Assignment Help Finance Basics
Reference no: EM13272563

If an investor buys 1ABC Mar 50 put at 4 when the market is 70. What's the instrinic value and time value associated with this contract?

Reference no: EM13272563

Questions Cloud

Compute the speed of the car : At rest, a car's horn sounds the note A (440 Hz). The horn is sounded while the car is moving down the street, What is the speed of the car
How high of a return do you need to earn : Assuming the most you can afford to save is $1000 per year, but you want to retire with $1 million in your investment account, how high of a return do you need to earn on your investment?
Determine rotation angles and different coordinates systems : Use MATLAB to generate a 256x256 black image (0 values) with a 1-valued central block (white square) of 64x64 size. Analytically or graphically define/derive how to determine the rotation angles and different coordinates systems.
What frequency is monitored by the leading ship : Two ships are moving along a line due east (see figure below). The trailing vessel has a speed relative to a land-based observation point of v1 = 59.5 km/h, What frequency is monitored by the leading ship
What is the instrinic value and time value : If an investor buys 1ABC Mar 50 put at 4 when the market is 70. What's the instrinic value and time value associated with this contract?
Procurement plan for hospital development : The Proposal to ensure the application of the concepts and techniques learnt in this module - In the Outline, you should also show clear boundaries between the following sections of the Final Project
What was the speed of the car before impact : An automobile having a mass of 1,000 kg is driven into a brick wall in a safety test. The bumper behaves like a spring with constant 5.55 106 N/m, What was the speed of the car before impact
What value should pk assign as the initial cost of project : When analyzing the bulk goods option, what value should PK assign as the initial cost of the project?
What current is needed in the coil to produce flux of 200 wb : A closed solenoid has a 100 turn coil. That core has a reluctance of 0.8(A-T/Wb). What current is needed in the coil to produce a flux of 200 Wb

Reviews

Write a Review

Finance Basics Questions & Answers

  What the income statement is showing

It has been said that a balance sheet is a snapshot of the firm at some point in time. What does this mean? How does it differ from what the income statement is showing?

  What is jose expected profit from the soft drink machine

Assume 250 working days in a year and ignore taxes and the time value of money. What is Jose's expected profit from the soft drink machine?

  Calculation of net present value of decision making

Calculation of Net Present Value of decision making and the mining engineers estimate a 60% chance of success and the financial staff has calculated

  Determine the total cost to company

Pension Fund project which will be offered in 5 years, company purchases zero coupon U.S. Treasury Trust Certificates which mature in five years, when originally issued they were 12 percent coupons.

  Calculate the current market value of the factory

A factory will generate an expected cash flow of $650,000 one year from now. After that, yearly expected cash flows from the factory will grow by 4% per year in perpetuity. The OCC for these cash flows is 11%.

  What is the maximum initial investment

What is the maximum initial investment for which this project is acceptable if the pre-tax required return on debt is 8% and the required return on equity is 18%?

  What is her projected roi

Create a scenario, similar to Jasmine the Account Exec; recall it can be business or personal.

  Which bond has the highest change in price?

20 year 0 coupon bond with a face value of $2,000 was issued at a rate of 10%. Currently the rate is 11%. 10 year 0 coupon bond with a face value of 10% is now is at 11%. Which bond has the highest change in price?

  How much compensation you expect to earn

Develop a three- to four-page analysis (excluding the title and reference pages) on the projected return on investment for your college education and projected future employment.

  Calculation of weighted average cost of capital

Calculation of weighted average cost of capital from given data and The company anticipates issuing new common stock during the upcoming year

  Use risk-neutral probabilities

The security's price will change (up or down) by 10% during the year, and the risk-free annual effective interest rate is 5%. The no-arbitrage price of the option is $100. Use risk-neutral probabilities to find the exercise price for the option.

  Business help-capital structure

Describe the influence of taxes and bankruptcy costs on optimal capital structure. If you were the current CFO of Rite-Aid Pharmacy, how would these considerations guide your decision making in the near future as you consider RA's capital structur..

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