Explanation:
Problem-Solving Teams is the right one hahahahahahahabaha
Answer:
48
Explanation:
N(d2): probability of call option being exercised
So current stock price = 100
K strike price = 100
r risk free rate = 0% = 0.05
s: standard deviation = 20%
t: time to maturity = 3month = 0.25 year
di – In(So/K) + (r +0.5 * 5%) ** S*t0.5
d1 = 0.05
d2 = dl - 5*10.5
d2 = -0.05
N(d2) = normsdist(d2) = 0.48
Pay-off per option = 1
No. of options sold = 100
Expected pay-off = -0.48*1*100 = -48
Therefore go long on 48 shares so that if stock price becomes 101, pay-off from stocks = 48*(101-100) = 48
Answer:
Talk to me I am here .
Explanation:
Call or text me
I am like a therapist my mom is a social worker
I have a younger brother
Call me don't say your name my oarebts will kill me
Just say hey Leah Dimas
I am your friend from Kucera
661 662 2144
Answer:
($ in million)
Dr Cash 81.6
Dr Discount on bonds payable 2.8
Cr Bonds payable80.0
Cr Equity-stock warrants outstanding 4.4
Explanation:
Preparation of the journal entry to record the issuance of the bonds.
($ in million)
Dr Cash 81.6
(80,000,000 X 102/100 = $81.6 million)
Dr Discount on bonds payable 2.8
(80+4.4-81.6 = $ 2.8 million balancing figure)
Cr Bonds payable 80.0
Cr Equity-stock warrants outstanding 4.4
($5 × 11 warrants × 80,000 bonds= $4.4 million)
(Being To record issuance of bonds)