This question is incomplete, the complete question is;
We will derive a two-state put option value in this problem.
Data: S₀ = 106; X = 112; 1 + r = 1.12. The two possibilities for ST are 149 and 75.
The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put
Answer: the hedge ratio of the put H = - 1/2 ≈ - 0.5
Explanation:
Given that;
S₀ = 106, X = 112, 1 + r = 1.12
Us₀ = 149 ⇒ Pu = 0
ds₀ = 75 ⇒ Pd = 37
To find the Hedge ratio using the expression
H = Pu - Pd /Us₀ - ds₀
so we substitute
H = 0 - 37 / 149 - 75
H = - 37/ 74
H = - 1/2 ≈ - 0.5
When investors give computer instructions to sell automatically to avoid potential losses if their stock price dips to a certain point, it is called program trading.
<h3>What is program trading?</h3>
Program trading is what create space or time for multiple trades to occur simultaneously.
It is an automated process that gives instructions to computers to sell when price of a stock goes down to prevent loss.
Learn more about program trading here: brainly.com/question/13955369
#SPJ1
$5,040 since Irene earned nearly earned about $4,800 less than what she would be making if she did not make her early withdrawal.
Answer:
The correct answer to the following question is distributing the product intensively.
Explanation:
An item like gum which can be said to be lost cost item , should be distributed intensively , so that this product is always readily available to the consumers . For a product like this, people are not going put so much effort in to it ( like driving long way ), to buy this product which consumers often buy on the impulse. Consumers don't plan long ahead to buy a pack of gum , they just do it when they feel like they want to chew a gum , so its important that product like this should be intensively in the market.
Answer: $40,000
Explanation:
The gain from discounted operations assuming no income taxes, is the gain from the sale of the asset less the net operating losses in the period.
= Gain from Sales of Asset - Net losses in period
= 90,000 - ( 20,000 + 30,000)
= $40,000
