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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:

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Production Budget Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1 inventory is 35,0

sergij07 [2.7K]

Answer and Explanation:

The preparation of the production budget is presented below:

Projected sales units 800,000 candles

Add: Desired ending inventory, Dec 31 20,000 units

Total units available 820,000 units

Less: Estimated beginning inventory,Jan 1 -35,000 units

Total units to be produced 785,000 units

We simply applied the below formula i.e

= Sales units + ending inventory units - beginning inventory units

By applying this formula we can get the Total units to be produced in January month

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3 years ago

9. How is planning made any why is it important ? Explain .<br><br>

Varvara68 [4.7K]

Planning is made through a psychological process of rendered thoughts and ideas. Planning is important because for starters, it is a good way of gathering things in one’s mind and having mental organization. It is better to have things planned out than procrastinated because then, stress levels rise, efficiency is slower, and the accuracy of things that go on significantly depletes. Without planning, most of us would not survive because we would be so caught up in what is happening in the moment and how that affects us that we would not be able to process an idea or, as we’re referring to here, a plan. If you need any help, let me know and I will gladly assist you.

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1 year ago

Steve is preparing a market analysis for the joneses and has selected three comparable properties. how many adjustments should s

zzz [600]

For the Joneses, Steve is putting together a market analysis and has chosen three comparable homes. Steve should Zero Adjustment alter the joneses' proper behavior in any way.

Sensors and instruments must produce an output that is a precise, predictable, and repeatable function of their input in every measurement setting. A 0 - 10 Bar pressure transmitter, for instance, might have a 0 - 10 V output that, starting with 0 V output for a 0 Bar pressure measurement, corresponds to its 0 - 10 Bar measurement range in a linear manner. To make sure that its output is indeed 0 V for a 0 Bar input, the transmitter must be calibrated. When this isn't the case, there needs to be a way to alter, or "zero," the output. The usage of an electronic gadget.

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11 months ago

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $150,000 or $290,000 with equal

lara [203]

Answer:

(A) The price you will be willing to pay for the portfolio is $194,690.

(B) The expected rate of return is 13%.

Explanation:

A. If you require a risk premium of 7%, how much will you be willing to pay for the portfolio?

The amount you be willing to pay for the portfolio can be calculated using the following formula:

The price you will be willing to pay for the portfolio = Expected cash flow / (1 + Required rate of return) ................... (1)

Where;

Expected cash flow = ($150,000 * 0.5) + ($290,000 * 0.5) = $220,000

Required rate of return = Risk free rate + Risk premium = 6% + 7% = 13%, or 0.13

Therefore, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.13) = $220,000 / 1.13 = $194,690

B. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be?

The expected rate of return (E(r)) can be calculated using the following formula:

Amount to be paid for the portfolio * [1 + E(r)] = Expected cash flow

Therefore, we have:

$194,690 * [1 + E(r)] = $220,000

$194,690 + ($194,690 * E(r)) = $220,000

$194,690 * E(r) = $220,000 - $194,690

$194,690 * E(r) = $25,310

E(r) = $25,310 / $194,690 = 0.13, or 13%

Therefore, the expected rate of return is 13%.

C. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?

Required rate of return = Risk free rate + Risk premium = 6% + 15% = 21%, or 0.21

Using equation (1) in part A, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.21) = $220,000 / (1.21) = $181,818

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2 years ago

When a person incorporates unimportant events within a delusional framework and reads personal significance into trivial activit

mafiozo [28]

Ideas of reference.

When someone consists of unimportant occasions inside a delusional framework and reads private importance into trivial activities of others it's miles called thoughts of reference. it's far one of the symptoms of schizophrenia and different delusional disorders.

Ideas of reference or delusions of reference involve someone having a notion or perception that irrelevant, unrelated or harmless things inside the world are regarding them without delay or have special non-public significance.

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1 year ago