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3 years ago

The following information is available on a depreciable asset owned by Mutual Savings Bank:

Business

1 answer:

BARSIC [14]3 years ago

3 0

Answer:

$4366.67

Explanation:

Given: Asset book value on july 1, year 3= $57800

Salvage value= $5400

Useful life left= 6 years.

Now, computing the depreciation expense under straight line method.

Formula; Depreciation= $\frac{Asset\ book\ value - salvage\ value}{useful\ life}$

Useful life in months= $6\times 12= 72\ months$

Next, Depreciation expense= $\frac{57800-5400}{72} = \$ 727.77$

∴ Monthly depreciation expense= $ 727.77

Depreciation expense for last six months of year 3= $727.77 \times 6= \$ 4366.67$

∴ Depreciation expense for last six month of year 3 is $4366.67.

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Answer:

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3 years ago

The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $95 per share for months, and you believe

miv72 [106K]

Answer:

The price of 3 months call option on stock is 8.03.

Explanation:

Acording to the details we have the following:

P = Price of 3-months put option is $6

So = Current price is $95

X = Exrecise price is $95

r = Risk free interest rate is 9%

T = Time is 3 months=1/4

C=Price of call option?

Hence, to calculate what must be the price of a 3-month call option on C.A.L.L. stock at an exercise price of $95 if it is at the money, we have to use the formula from put-call parity.

C=P+So- X

(1+r)∧T

C=$6+$95- ( $95 )

(1+0.09)∧1/4

C=$6+$95-$92.97

C=8.03

The price of 3 months call option on stock is 8.03

5 0

3 years ago

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ddd [48]

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3 years ago