Answer: 2.09
Explanation:
Given the following ;
Strike price (K) = $50
Price (c) = $6
Rate (r) = 6% = 0.06
Stock price (So) = $51
Time (T) = 1
Recall, relation for a put-call parity(p) is given by:
p + So = c + Ke^-(rT)
p = c + [Ke^-(rT)] - So
p = 6 + [50e^-(0.06 × 1)] - 51
p = 6 + [50×e^-0.06] - 51
p = 6 + (50 × 0.9417645) - 51
p = 6 + 47.0882267 - 51
p = 53.0882267 - 51
p = 2.0882267
p = 2.09
Answer:
Rochelle:
Rochelle because Because her oil company is safer than Lionel because if there were an oil spill the damage would be huge and it would damage the fish while if they take on Rochelles's idea, they can keep the fish healthy and happy.
Answer & Explanation:
Depreciation a/c ...dr
Loss a/c .....dr
Charity a/c .. dr
To machine a/c
- Machine amount = Machine cost value (eg, lets suppose = 2,000,000)
- Charity amount = fair value of machine at time of donation = 1,4300,000. It is the amount that could have been otherwise received on machine sale, but is given as charity.
- Accumulated depreciation is the total depreciation on machine upto date (eg, lets suppose = 5,00,000)
- Loss = (Machine cost - accumulated depreciation) - current fair value
Eg: If cost = 2,000,000 & accumulated depreciation = 5,00,000. Machine value should be = 2,000,000 - 5,00,000 = 15,000,000. The fall in value from 15,000,000 to 1,430,000 = 70,000 is loss on machine disposal.
