1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
balu736 [363]
3 years ago
10

A stock price is currently $40. It is known that at the end of 1 month it will be either $42 or $38. The risk-free interest rate

is 8% per annum with continuous compounding. What is the value of a 1-month European call option with a strike price of $39?

Business
1 answer:
mafiozo [28]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

You might be interested in
Belinda keeps a record of her expenses for the week as shown:
Mademuasel [1]

Answer:

d. $38.00

Explanation:

The computation of the overall Belinda expense for the week is shown  below:

= Bus fare expense + lunch out expense + hair cut expense + movie rental expense

= $8.70 + $7.35 + $16 + $5.95

= $38

We have added all the types of expenses that are provided in the case i.e. bus fare, lunch out, hair cut and movie rental expenses.

6 0
3 years ago
A withdrawal of cash from a bank that does not put the bank's reserves below the level of required reserves will ______.
Svetach [21]

If there is a withdrawal of cash from a bank which does not go below the required reserves, the withdrawal will not change money supply but will reduce bank checkable deposits.

<h3>What does withdrawing from a bank do?</h3>

If one withdraws money from a bank, it will reduce the bank's checkable deposits as these are made of cash that was deposited by entities.

As regards total money supply however, these withdrawals will only have an impact if the withdrawal causes bank reserves to fall below the required reserves.

Find out more on required reserves at brainly.com/question/10684321.

4 0
2 years ago
A company that has never previously issued securities registered with the Securities and Exchange Commission, can register in a
tatiyna

Answer:

C. II and III

Explanation:

These are the options for the question

I Filing

II Coordination

III Qualification

A. I only

B. II only

C. II and III

D. I, II, III

The Securities and Exchange Commission (SEC) can be regarded as an oversight agency of U.S. government, which responsible for regulation of securities markets as well as protection of investors. civil actions can be taken by SEC against lawbreakers, they aworks hand in hand along with Justice Department on criminal cases. For a company to register under them , there must be Coordination and Qualification. It should be noted that company that has never previously issued securities registered with the Securities and Exchange Commission, can register in a State by Coordination and Qualification

5 0
3 years ago
Toys, Trinkets and More requires a minimum rate of return of 12% on its average operating assets. The toy department currently h
Serggg [28]

Answer:

Residual Income = $6,000

Explanation:

Residual income is the excess income of a firm leftover the opportunity cost of capital or over the desired income.

Given,

The minimum rate of return 12%

Average operating assets = $300,000

Net operating income = $42,000

We know,

Residual Income = Net Operating Income - (Average operating assets x the minimum rate of return)

Residual Income = $42,000 - ($300,000 x 12%)

Residual Income = $42,000 - $36,000

Residual Income = $6,000

6 0
3 years ago
WHICH PAIRS OF ANGLES IN THE FIGURE BELOW ARE VERTICAL ANGLES?
DochEvi [55]

A and D are the correct answers . You are welcome .

6 0
2 years ago
Other questions:
  • Describe the four goals of human resource management with examples and explanation of what is meant by the goal.
    9·1 answer
  • Why does a government place price ceilings, such as rent control, on some “essential” goods?. A. to prevent the development of a
    13·2 answers
  • Bayside Coatings Company purchased waterproofing equipment on January 2, 20Y4, for $190,000. The equipment was expected to have
    6·1 answer
  • The ____ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organizati
    10·1 answer
  • 15. If you are the kind of person who wants to succeed in whatever you do, you value
    9·1 answer
  • When Luke, Larry, and Lance lost their jobs during the recent recession, they pooled their resources, borrowed a little more, an
    14·1 answer
  • The law of supply:
    11·1 answer
  • Stan is a real estate broker in Colorado. He has identified a property for a fast food outlet and has asked four friends to cont
    6·2 answers
  • Define a two-bin system. Multiple choice question. It specifies the amount of risk of incurring a stockout that a firm is willin
    5·1 answer
  • Who are the main stakeholders that the y is attempting to reach with the information it has gained through its market research?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!