Awnser....... please please please

The exercise price of the options is $100 per share, all options are European and the stock does not pay any dividend. The call

Ber [7]

Answer:

Stock Price is $98.70

Explanation:

given data

exercise price = $100 per share

call price = $25 per share

put price = $17 per share

mature time = 2 years

annual rate of interest = 5%

to find out

What is the stock price today

solution

we will use here Put Call Parity for find out Stock Price that is express as

C + $\frac{100}{(1+r)^t}$ = S + P .....................1

here C is call price and r is rate and t is time and S is Stock Price and P is put price so put all value in equation 1

C + $\frac{100}{(1+r)^t}$ = S + P

25 + $\frac{100}{(1+0.5)^2}$ = S + 17

solve it we get

P = $98.70

so Stock Price is $98.70

6 0

3 years ago

darby writes a check to education loan management inc, that is drawn on darbys account at federal bank. if thr bank does not acc

Aleksandr-060686 [28]

Liability is on Darby because they were the one to write the original check and give it to the education loan management inc. Since the check wasn't accepted they have to take responsibility and liability for the fact that it was not accepted.

5 0

3 years ago

Uncle John's Pipe Company has been experiencing several years of financial difficulty and, thus, has considered maintaining its

Iteru [2.4K]

Answer:

The value of its common stock is $29.41

Explanation:

As the Dividend payment is for indefinite period of time, This is the perpetuity payment. The value of share can be determined by calculating the present value of perpetuity payment.

The formula for the present value of perpetuity is as follow

Present value of perpetuity = Cash flow / Required Rate of return

In this case the present value of perpetuity is the value of stock cash flows is The dividend payment.

Value of Stock = Dividend / Required Rate of return

Value of Stock = $2.5 / 8.5%

Value of Stock = $29.41

6 0

3 years ago

Read 2 more answers

Determine the annual financing cost of a 6-month (182-day) 20,000 discounted bank loan at a stated annual interest rate of 10 pe

ratelena [41]

Answer:

10.52%

Explanation:

The computation of the annual financing cost is shown below:

First we have to calculate the interest cost that is shown below:

= $20,000 × 10% × 182 days ÷ 365 days

= $997.26

Now the used funds is

= $20,000 - $997.26

= $19,003

Now the annual financing cost is

= ($997 ÷ $19,003) × (365 days ÷ 182 days)

= 10.52%

We assume there are 365 days in a year

3 0

3 years ago

Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

True [87]

Answer:

Overheads cost allocated to Mossman Job = $449

Explanation:

We have been provided the cost of each activity and their respective drivers.

There are three activities

Supervision of Direct Labor = $304,000 for 760,000 labor hours

Machine Maintenance = $153,600 for 960,000 hours

Facility rent = $165,000 for 110,000 square feet

Activities of Mossman Job and respective costs will be as follows:

Supervision of Direct Labor = $304,000/760,000 X 260 labor hours = $104

Machine Maintenance = $153,600/960,000 X 1,500 = $240

Facility Rent = $165,000/110,000 X 70 = $105

Net Overheads cost allocated to Mossman Job = $104 + $240 + $105 = $449

6 0

3 years ago

Awnser.......pleasepleaseplease