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aleksandr82 [10.1K]
3 years ago
8

he price of a non-dividend paying stock is $55 per share. A 6-month, at the money call option is trading for $1.89. If the annua

l interest rate is 6.7%, what is the price, based on put-call parity, of a European put at the same strike and expiration?
Business
1 answer:
scoray [572]3 years ago
4 0

Answer:

$0.135

Explanation:

To solve the following, we should use the following method

For us to be able to determine the price base on put call parity

The formula for put call parity is gives as c + k = f +p, meaning the call price plus the strike price of both options is equal to the futures price plus the put price.

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Ways to deal with a quite person in a workplace
Softa [21]
Try to talk to him of the time, make him feel comfortable on you and to the team so that he would not feel awkward in speaking in front. Help him boost his confidence, give him chances to shine and showcase his skills. Put him in training team somehow?
7 0
3 years ago
Assume that at the current market price of $5 per unit of a good, you are willing and able to buy 20 units. Last year at a price
sammy [17]

Answer:

The correct answer is the demand has increased.

Explanation:

At the market price of $5/unit, the quantity demanded is 20 units.  

Last year at the price level of $4, the quantity demanded was 20 units.  

We see that even though the price has increased the quantity demanded is the same. This indicates that the demand has increased.  

When there is an increase in the demand for a commodity, the demand curve moves to the right. This upward or rightward shift in the demand curve will cause the price of the commodity to increase. Though the quantity demanded will be the same.

6 0
3 years ago
When George and Arthurine Renfro decided to start a family business in 1990 and market chowchow, a southern regional food, they
Katyanochek1 [597]

Answer:

identifying pricing constraints.

Explanation:

From the question we are informed about George and Arthurine Renfro decided who decided to start a family business in 1990 and market chowchow, a southern regional food, they had to determine how they would price the chowchow by examining the demand for the product (would people rather eat home-made or store-bought), the cost of getting the jars for bottling the chowchow, and how much it would cost to distribute the product to area stores. In other words, in this case, the Renfros had to begin the development of their pricing strategy by identifying pricing constraints. .

Pricing constraints can be regarded as

factors which brings about limit of latitude of prices which a company may set.

7 0
3 years ago
What is the option to sell shares of stock at a specified time in the future called? a stock exchange a call option a future a p
MrRa [10]

Answer:

A put option

Explanation:

  • An option is a finantial instrument that allows you to chose wether you buy (a call option) or sell (a put option) an specific good or intrument in a specific time in the future, at a specific price.
  • When talking about an option, you<u> can choose</u>  if you are going to exercise your right to buy (if it is a call option) or sell (if it is a put option).
  • This is a difference between a future and an option: a future is a compromise to buy or sell an specific commodity or finantial instrument, while the option makes it optional (to buy or sell).
  • A stock exchange is a simple exchange of stocks, but without a compromise to do it at a specific time in the future or prices. There is no option or obligation to buy or sell in a common stock change  case.
  • In this case, we are talking about a put option (an option to sell), and the finantial instrument that is linked to the option are shares of stocks.
  • Then,  in a specified time in the future you will be able to sell shares of stock using a put option.
3 0
4 years ago
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Apple issued three debt issues of corporate bonds to borrow money to finance the building and operating of its new research lab.
Sedbober [7]
Um well that is uh very confusing so idk yea sry I couldn't help

8 0
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