Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
You are the writer of a put option on Apple Inc. common stock. The option has an exercise price of $122 and the stock is currently trading at $124.70. The option premium is $3.60 per contract.
a. What is your net profit/loss if Apple Inc. stock price increased to $126 and stays at that price until the option expires? (Show your calculations)
b. What is your net profit/loss on the option if Apple’s stock price decrease to $115 and the option holder exercises the option? (Show your calculations)
c. Below, graphically show your answers to parts (b) and (c) in the profit and loss diagram. In the graph be sure to add the exercise price (X), the payoff structure from the option, the profit/loss amount on the y-axis for parts (b) and (c).
Fooling Company has a 10.2 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $50. What is the yield to call (YTC) for this bond if the current price is 109 percent ..
Mitchell Auto Parts Inc. has estimated the probability distribution of its annual net cash flows as follows: Compute the expected annual cash flow. Compute the standard deviation of annual cash flows. Compute the coefficient of variation of annual ca..
The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0940. The variance of Willow is 0.1890, and the variance of Sky Diamond is 0.1210. What is the correlation coefficient between the returns of the two stocks?
Suppose you invested $60 in the Ishares Dividend Stock Fund (DVY). It paid a dividend of $0.70 today and then you sold it for $65. What was your return on investment? A) 8.25% B) 9.00% C) 9.50% D) 9.75%
Which models have the greatest following, discounting models (like IRR and NPV) or non time value of money models (like payback and accounting rate of return)?
Holyrood Co. just paid a dividend of $2.10 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent divi..
Wear Ever is expanding and needs $11 million to help fund this growth. The firm estimates it can sell new shares of stock for $40 a share. It also estimates it will cost an additional $300,000 for filing and legal fees related to the stock issue. The..
In lowering the reserve requirement for banks, the Fed hopes to:
Suppose that a bank has $5 billion of one-year loans and $30 billion of five-year loans. These are financed by $25 billion of one-year deposits and $10 billion of five –year deposits. Explain the impact on the bank’s net interest income of interest r..
a publisher sells books to borders at 12 each. borders prices the book to its customers at 24 and expects demand over
The stock of Cleaning Corp. is currently selling for $25 a share. The company is expected to pay a dividend of $0.75 at the end of this year. If you bought Macbeth stock today and sold it for $29 after receiving the dividend, what rate of return woul..
Input Out Oil Inc.'s CFO has stated that the firm will pay dividends only if acceptable capital budgeting opportunities do not exist. Which concept did the CFO most likely base her decision on?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd