This question is incomplete, the complete question is;
We will derive a two-state put option value in this problem.
Data: S₀ = 106; X = 112; 1 + r = 1.12. The two possibilities for ST are 149 and 75.
The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put
Answer: the hedge ratio of the put H = - 1/2 ≈ - 0.5
Explanation:
Given that;
S₀ = 106, X = 112, 1 + r = 1.12
Us₀ = 149 ⇒ Pu = 0
ds₀ = 75 ⇒ Pd = 37
To find the Hedge ratio using the expression
H = Pu - Pd /Us₀ - ds₀
so we substitute
H = 0 - 37 / 149 - 75
H = - 37/ 74
H = - 1/2 ≈ - 0.5
Answer:
$360,308
Explanation:
The computation of the total amount of interest revenue is shown below:
But before that we have to determine the annuity payment per year which is
Annuity payment per year is
= Fair value ÷ PVIFA for 10% for 5 years
= $991,692 ÷ 5.868
= $169,000
Now Total payments for eight years is
= $169,000 × 8
= $1,352,000
So, the amount of interest revenue is
= Total payments made for eight years - Fair value
= $1,352,000 - $991,692
= $360,308
Answer:
$500
Explanation:
The average cost per seat will be the total cost per plane divided by the seating capacity.
Therefore, the average cost of $50,000 divide by 100 seats
=$50,000/50 seats
=$500
It is to provide your clients a visual demonstration of their current financial situation, the raw numbers on where they are today, and what it would take for them to reach their goals and dreams.
Answer:
dual mandate.
Explanation:
dual mandate -
It is the practice in which the elected officials serves in more than one elected or public position .
In Britain , this term is also referred to as double jobbing .
In some cases , the dual mandate is prohibited by the law , as in the case of the federal states , because the federal office holders are not allowed to hold state office .
Hence from the question information , the correct option is dual mandate .
