Investor A bought a call option that expires in 6 months. Investor B wrote a put option with a 9-month maturity. All else equal,
1 answer:
You might be interested in
<u>Solution and Explanation:</u>
The following formula is used in order to calculate the days sales outstanding:
Days sales out standing = ( Accounts receivable divided by Sales ) multiply with 365
= $1.5 million divided by $12 million multiply with 365
After calculating we get, 45.625 days
<u>In order to calculate the capital released, the following formula is used: </u>
= 513699
Therefore, the capital released is $513699