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Gala2k [10]
1 year ago
9

Would you expect a $1 increase in a call option’s exercise price to lead to a decrease in the option’s value of more or less tha

n $1?.
Business
1 answer:
DedPeter [7]1 year ago
3 0

The call price will decrease by less than $1.

  • The call price( also known as" redemption price") is the price at which the issuer of a callable security has the right to buy back that security from an invest or creditor.
  • The call price is generally the seen value of the bond, plus a fresh chance. The quantum of the call price and the dates during which it can be legislated are specified in the indenture agreement associated with the bond.
  • Also, par value still matters for a callable common
  • stock
  • the call price is generally either par value or a small fixed chance over par value.

Learn more about call price here: brainly.com/question/17151706

#SPJ4

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An investor wants to invest $20,000 but anticipates needing those funds in five years for a business investment. Currently, with
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D. Zero-tranche CMO with estimated 5 years life

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4 0
3 years ago
Analyze if the investment in new equipment is profitable based on the information given below. Cost of new equipment $66,000 Yea
katrin [286]

Answer:

D

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 =  $-66,000

Cash flow each year from year 1 to 4 = $20,000

IRR = 8.16%

For the project to be profitable, the IRR has to be greater than the desired rate of return

Since the IRR (8.16%) is lower than the desired rate of return (10%), the project isn't profitable

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

8 0
4 years ago
A 7-year municipal bond yields 4.80%. Your marginal tax rate (including state and federal taxes) is 32.00%. What interest rate o
Contact [7]

Answer:

the Interest rate on corporate bond is 7.06%

Explanation:

The computation of the rate of interest is shown below:

As we know that

The Interest rate on corporate bond × (1 - tax rate) = Municipal bond yield

The Interest rate on corporate bond × (1 - 0.32) = 4.80%

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The Interest rate on corporate bond  = 4.80% ÷ 0.68

= 7.06%

Hence, the Interest rate on corporate bond is 7.06%

3 0
3 years ago
To lower the rate of employee attrition within the organization by 5 percent through the use of effective employee retention and
azamat

Answer:

The correct answer is B

Explanation:

Retention of the employee comprise the various steps which is to be taken in order to retain the employee who wishes to move on. The employee need to find his job challenging and as per the interest at work and stay or retain with the firm or business for the longer period of time.

So, if there is lower in the rate of employee attrition by using the technique of the retention and motivation, the valid and correct criticism for this objective is that it does not provide or offer the time frame for accomplishing the objectives.

4 0
3 years ago
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