Answer:
D. $0.93
Explanation:
Upmove (U) = High price/current price
= 42/40
= 1.05
Down move (D) = Low price/current price
= 37/40
= 0.925
Risk neutral probability for up move
q = (e^(risk free rate*time)-D)/(U-D)
= (e^(0.02*1)-0.925)/(1.05-0.925)
= 0.76161
Put option payoff at high price (payoff H)
= Max(Strike price-High price,0)
= Max(41-42,0)
= Max(-1,0)
= 0
Put option payoff at low price (Payoff L)
= Max(Strike price-low price,0)
= Max(41-37,0)
= Max(4,0)
= 4
Price of Put option = e^(-r*t)*(q*Payoff H+(1-q)*Payoff L)
= e^(-0.02*1)*(0.761611*0+(1-0.761611)*4)
= 0.93
Therefore, The value of each option using a one-period binomial model is 0.93
Answer:
Countries typically have greatest power of inspirations for the most part because of their control and magistrates powers and powerful controls like variations in restrictive setting to satisfy national financial wants. but they'll be limited by Global bodies complete authorizations similar to however United Nations agency bailed out Ellas with non-indulgence measures, however United Nations obligatory authorizations on varied smaller countries, etc.
Correspondingly even massive transnational companies have influence because of their sturdy political association, media backing, generous market portion and client base, Depending concern in minds of state because of their disappointment if any which might cause common negative consequences, but this power is proscribed once direction sees various players UN agency cn additional such massive companies.
Answer:
Please ask study related questions,mate.
Answer:
The adjusted trial balance is prepared after adjusting entries have been recorded and posted.
Explanation:
Only the adjusted trial balance is accurate and more up to date than an unadjusted trial balance and must be used to prepare financial statements.
The adjusted arise from the end of reporting period adjustment such as inventory valuation and errors that might have been identified during the reporting period.
Answer:
Rate of interest is 8.37%
Explanation:
Future Value = 
3,500 = 2750 
=
![\sqrt[3]{\frac{3500}{2750}}](https://tex.z-dn.net/?f=%5Csqrt%5B3%5D%7B%5Cfrac%7B3500%7D%7B2750%7D%7D)
= ![\sqrt[3]{(1+r)^{3}}](https://tex.z-dn.net/?f=%5Csqrt%5B3%5D%7B%281%2Br%29%5E%7B3%7D%7D)
1.0837 = 1+r
r = 1.0837 - 1
r = 0.0837
r = 8.37%
Check:
3500 = 2750 
3500 = 3500
