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blondinia [14]
3 years ago
13

The price of a stock today is $100. next year, the stock price will be either $120 or $90. the risk-free rate is 3% per year. wh

at the the price of a put option with strike price $98
a. the put option price is $4.00
b. the put option price is $4.23
c. the put option price is $4.40
d. not enough information to tell
Business
1 answer:
fredd [130]3 years ago
5 0
A. The put option price is $4.00
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Your friend just won the lottery. He has a choice of receiving $50,000 a year for the next 20 years or a lump sum today. The lot
lisov135 [29]

Answer:

The lump sum would be $1,000,000.

Explanation:

500000 \times 20 = 1000000

It would be $1,000,000 without the discount rate, but I don't know how to subtract a discount rate from a number. Sorry.

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2 years ago
The study of economics is really boring, and it has little to do with my daily life.
zvonat [6]

Studying economics can be really boring, because of the amount of technical terms that can be difficult for everyone to understand, but it is important to learn economics as we deal with it in our daily life.

All of our activities are related to economics, as economics is defined as the science that studies the economic process, the distribution of wealth and resources for satisfying human needs and well-being.

Through economics we can understand several variables that impact our lives, such as:

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  • make investments.

Therefore, it is necessary for each individual to have a base of economic knowledge to better understand how and why things happen in the world and how they directly impact our lives.

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brainly.com/question/17408105

7 0
3 years ago
Why would an entrepreneur be best suited to opening a new business, rather than buying an existing business or franchise?
Mariulka [41]

Answer:

For example, it's really easy to finance while buying in an existing business while starting a new one. In Addition tons of bankers and investors all around the world would feel more comfortable dealing with a business that already has had a proven track record.

Explanation:

3 0
3 years ago
A consumer's goal in buying a good or service is to get the most out of his or her income, or to maximize total utility. This is
marissa [1.9K]
I'm thinking B. But I'm not sure
4 0
3 years ago
Read 2 more answers
Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 6.2%. Now, with 6 yea
lyudmila [28]

Answer:

The price of the bond is $659.64.

Explanation:

C = coupon payment = $62.00 (Par Value * Coupon Rate)

n = number of years = 6

i = market rate, or required yield = 15 = 0.15  = 0.15 /2  = 0.075

k = number of coupon payments in 1 year = 2

P = value at maturity, or par value = $1000

BOND PRICE= C/k [ 1 - ( 1 / ( 1 + i )^nk ) / i ] + [ P / ( 1 + i )^nk )]

BOND PRICE= 62/2 [ 1 - ( 1 / ( 1 + 0.075 )^6x2 ) / 0.075 ] + [ $1,000 / ( 1 + 0.075 )^6x2 )]

BOND PRICE= 31 [ 1 - ( 1 / ( 1.075 )^12 ) / 0.075 ] + [ $1,000 / ( 1.075 )^12 )]

BOND PRICE= 31 [ 1 - ( 1 / ( 1.075 )^12 ) / 0.075 ] + [ $1,000 / ( 1.075 )^12 )]

BOND PRICE= $239.79 + $419.85 = $659.64

8 0
2 years ago
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