Determining the value of a put option
The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $55 sells for $7.20. What is the value of a put option, assuming the same strike price and expiration date as for the call option?
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A minimum cash balance of $10,000 is required, and the cash balance at December 31 is $10,200. Loans are obtained at the end of a month in which a cash shortage occurs.
The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available:
Boise Corp had a margin of safety of $394,000 last month, with sales revenue of $1,120,000 and fixed costs of $333,960.
If the appropriate required rate of return for ADM's stock is 15 percent, what should be the price of the stock in one year, P-hat sub 1? Assume that the company has achieved constant growth.
The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $55 sells for $7.20. What is the value of a put option, assuming the same strike price and expiration date as for the call option
The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 13.00%. Based on the SML, what is the firm's required return?
Susan Brauns regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Susan works 47 hours.
A pawn shop will lend you $100 for 10 days at a cost of $5 interest. What is the effective rate of interest?
Compnay has capitla budget of 1,000,000. wants to keep target captial structure of 60% debt and 40% equity. Forecast net income of $600K. Copmnay wants to use residual divident policy. what is dividend payout ratio?
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