It’s the second one hope i helped yeah have a good.......
Answer:
IRR = 10.75%
Explanation:
The yield to maturity will be the rate at which the present value of the coupon payment and the maturity equals the market price.
C 57.50
time 24
PVc
Maturity 1,000.00
time 24.00
PVm
PV c $765.3158
PV m $284.6842
Total $1,050.0000
rate ?
The only way to solve this equation is with trial and error. Because of technological advance we can do it using excel goal seek.
we write the formula for the PV of an ordinary annuity
and the formula for a lump sum
below them we add them both together
then we define a cell for the rate
and we determinate that we want the cell which contain the sum to match 1,050 changing the rate cell
this will give us an IRR of 0.10749 = 10.75%
The last day to get exercise the option and receive the dividend is two business days prior to the record date. The customer can also exercise his dividend claim two business days prior to the ex-date or one business date prior to the ex-date. The only option not available to him is one business day prior to the record date.
An option is a right available to a shareholder to buy a particular stock of which he has bought a call option at an agreed price. This option can be exercised by the holder to purchase the share at any given date and at a price that is agreed upon. The option holder requires to be eligible for dividends,
Dividends are declared as a benefit to shareholders of a company. The options holder will have to purchase the shares before the record date and will be eligible to receive a dividend.
1. Learn more about the call option here:
brainly.com/question/20732384
2. Learn more about dividends here:
brainly.com/question/15395112
#SPJ4
Answer:
p = $2.51
Explanation:
Given:
- D = $0.50
- Stock price: $29 (s)
- Interest rates: 10%.
- Strike price of $30 : $2 (c)
To find the the price of a European put option, we use here pit call parity that is
:
c - p = s - k
- D
<=> p = c - s + k
+ D
<=> p = 2 -29 + 30
+ 0.5
<=> p = $2.51
Hope it will find you well
Answer:
C.
Explanation:
Because naturally within a market the equilibrium price is trying to be reached, (besides price ceilings and floors imposed by the government), Sellers will naturally push the price downwards because they must compete with each other to make a living. Thus answer C. is correct.