Name the old name of java

A one-year call option contract on Cheesy Poofs Co. stock sells for $1,330. In one year, the stock will be worth $65 or $86 per

givi [52]

Answer:

$98.02

Explanation:

Data provided in the question:

Value of contract = $1,330

Maximum value = $86

Minimum value = $65

Exercise price = $78

Risk-free rate = 3%

Now,

Current value of stock = $(\frac{\text{Maximum value-Minimum value}}{\text{Maximum value-Exercise price}}\times\text{Call price})+(\frac{\text{Maximum value }}{\text{1+Risk-free rate}})$

also,

a standard contract has 100 shares

thus,

Call price = Value of contract ÷ 100 shares

or

Call price = $1,330 ÷ 100 = $13.30

Thus,

Current value of stock = $(\frac{\text{86-65}}{\text{86-78}}\times\text{13.30})+(\frac{\text{86}}{\text{1+0.03}})$

or

Current value of stock = ( 2.625 × $13.30 ) + $63.1068

= $98.0193 ≈ $98.02

6 0

3 years ago

Webster is a talented baker and has a degree in business management. He wants to own his own chain of incorporated bakeries one

Semmy [17]

Answer:Lack of Feasibility studies

Explanation:

He might experience obstacle if he choose not to understand the area and its demand by the people around the selected area.

Secondly is lack of capital to start up the business.

7 0

2 years ago

Read 2 more answers

Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products on the bas

Maurinko [17]

Answer:

$340,000

Explanation:

The computation of Product X’s sales value at the split-off point is shown below:

= Total sales value - Product Y sales value at the split-off point - Product Z sales value at the split-off point

= $600,000 - $150,000 - $110,000

= $340,000

Basically for determining the Product X sales value at the split-off point, we deduct the Product Y sales value and the Product Z sales value at the split-off point from the total sales value

8 0

2 years ago

BE16.15 (LO 5) Bedard Corporation reported net income of $300,000 in 2020 and had 200,000 shares of common stock outstanding thr

Verizon [17]

Answer:

$1.40 per share

Explanation:

The computation of the diluted earning per share is shown below:

Diluted earning per share = Net income ÷ weighted number of shares

where,

Net income is $300,000

And, the weighted number of shares is

= 200,000 shares + (45,000 options - 45,000 options × $10 ÷ $15

= 200,000 shares + (45,000 options - 30,000 options)

= 200,000 shares + 15,000

= 215,000 shares

So, the diluted per share is

= $300,000 ÷ 215,000 shares

= $1.40 per share

5 0

3 years ago

You are offered a chance to buy an asset for $5,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000

jeyben [28]

The rate of return I would earn if you bought the asset is 16.91.

<h3>What is the internal rate of return?</h3>

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested. It is a capital budgeting method.

IRR can be calculated with a financial calculator

Cash flow in year 0 = $-5250
Cash flow in year 1 = $750
Cash flow in year 2 = $1000
Cash flow in year 3 = $850
Cash flow in year 4 = $6250

IRR = 16.91%

To learn more about the internal rate of return, please check: brainly.com/question/24172627

8 0

2 years ago

Name the old name of java​

Name the old name of java