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2 years ago

What is the value of a put option at expiry if the stock price is 'S' and the exercise price is 'X'?

Business

1 answer:

Setler [38]2 years ago

6 0

Answer:

A put option is out of the money if the strike price is less than the market price of the underlying security. The holder of an option contract can exercise the option at any time before expiration.

Explanation:

hope this helps if not please let me know

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Where do banks get money to lend to borrowers?

Marysya12 [62]

The answer is "depositors".

An individual who is making a deposit with the bank is known as a depositor. The depositor is the moneylender of the cash which will be come back to him/her toward the finish of the store time frame.

A depositor (you) places cash in a banks vault, at that point the bank putts enthusiasm on it, and can utilize it in the event that it needs to. Up to a specific measure of it remains in the bank on the off chance that you need to come and withdraw.

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3 years ago

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Jerilyn is in the early stages of an inoperable cancer. she has prepared a signed and witnessed written document directing her f

klemol [59]

Answer:

Living will.

Explanation:

Living will can be described as a legal document in which an individual clearly states the type of treatment he or she will prefer in a situation whereby they are unable to communicate their wishes.

A living will enables an individual to make the right decision on the form of life support treatment that he or she would prefer to help aviod any form of confusion.

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2 years ago

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A south sea island produces only coconuts. In 2010, the price of a coconut is $1.50 and the quantity produced is 300. In 2012, t

Semenov [28]

1.50*300=$450
0.5*350=$175
(175/450)*100=39%
Real GDP in 2012 is 39%

8 0

3 years ago

Compass Inc. purchased 1250 bags of insulation, on account, from Glassco Inc. The bags of insulation cost $5.50 each. Compass pa

Alina [70]

Solution and Explanation:

Journal entry to record the purchase the bags of insultaion.

Date Particulars Debit Credit

Inventory $6875

accounts payable $6875

(Purchased insulated bags from Glassco Inc., 1250bags at the rate $5.5 each)

entry to record the payment for shipping

Inventory $320

cash $320

( paid shipping charges for bags to warehouse)

entry for return of the defective bags

accounts payable $275

Inventory $275

( returned defective bags to glassco Inc)

To record the payment for the bags kept by compass.

Accounts payable $6600

cash $6600

( payment for remaining bags to Glassco Inc., )

4 0

3 years ago

Stock R has a beta of 1.8, Stock S has a beta of 0.75, the expected rate of return on an average stock is 9%, and the risk-free

PIT_PIT [208]

Answer:

Stock R more beta than Stock S = 4.2%

Explanation:

given data

Stock R beta = 1.8

Stock S beta = 0.75

expected rate of return = 9% = 0.09

risk-free rate = 5% = 0.05

solution

we get here Required Return

Required Return (Re) = risk-free rate + ( expected rate of return - risk-free rate ) beta ...........1

Required Return (Re) = 0.05 + ( 0.09 - 0.05 ) B

Required Return (Re) =

so here

Stock R = 0.05 + ( 0.09 - 0.05 ) 1.8

Stock R = 0.122 = 12.2 %

and

Stock S = 0.05 + ( 0.09 - 0.05 ) 0.75

Stock S = 0.08 = 8%

so here more risky stock is R and here less risky stock is S

Stock R is more beta than the Stock S.

Stock R more beta Stock S = 12.2 % - 8%

Stock R more beta Stock S = 4.2%

4 0

2 years ago