Business, 18.03.2021 01:40 BeautyxQueen

Suppose that the current price of an asset is $31. The asset is expected to pay a dividend of $3 in one month. The asset also has an upfront carrying cost associated to it of $1. The risk-free rate is 5%. The price of a 3-month European call on this asset with strike $30 is $4. The price of a 3-month European put with strike $30 is $3.25. Construct a risk-free profit involving one call and one put.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 07:00

Amarket that consists of all possible consumers regardless of their specific needs or wants is a

Answers: 1

Answer

Business, 22.06.2019 19:40

You estimate that your cattle farm will generate $0.15 million of profits on sales of $3 million under normal economic conditions and that the degree of operating leverage is 2. (leave no cells blank - be certain to enter "0" wherever required. do not round intermediate calculations. enter your answers in millions.) a. what will profits be if sales turn out to be $1.5 million?

Answers: 3

Answer

Business, 22.06.2019 20:00

The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer:

Answers: 2

Answer

Business, 22.06.2019 20:50

Power plants that rely on coal increase the amount of sulfur dioxide that dissolves into the air, eventually increasing the acidity of precipitation. the higher acidity of rain and snow can damage forests by making it more difficult for plants to absorb minerals from the soil. the equations below provide information about the market demand and supply of electricity. there is a constant marginal external cost of $25 per unit of electricity.d: qd= 200 – 2ps: qs=p – 10what quantity of electricity satisfies allocative efficiency in this market? a. 60b. 70c. 50d. 43.3

Answers: 2

Answer

You know the right answer?

Suppose that the current price of an asset is $31. The asset is expected to pay a dividend of $3 in...

Questions