Answer:
- 0.30
Explanation:
Given the following :
Hedge ratio of an at-the-money call option on IBM = 0.35
Hedge ratio of an at-the-money put option = - 0.65
Hedge ratio of an at-the-money straddle =?
Hedge ratio of an at-the-money straddle is given by :
(Hedge ratio of an at-the-money call option + Hedge ratio of an at-the-money put option)
Hedge ratio of an at-the-money straddle :
(0.35 + (-0.65))
= (0.35 - 0.65)
= - 0.30
Answer:
Price of stock = $40
Explanation:
According to the dividend growth model, the price of a stock is the present value of expected dividend discounted at the required rate of return.
This is done as follows:
Price of a stock = D×(1+r)/(r-g)
D(1+g) - Dividend for next year = 100%-40%× $3 = $1.8
g- growth rate - 10%
r- required rate of return - 15%
Price of stock = 1.8× (1.1)/(0.15-0.1)
= $40
Answer:
The current price of the stock is $68.42
Explanation:
The dividends on a stock that pays a constant dividend and will cease paying dividend after a defined period can be treated as an annuity. The dividends are constant and are paid after equal interval of time and for a defined period of time. To calculate the price of the share today, we will use the formula for the present value of ordinary annuity. The formula is,
Present value = 9.8 * [ 1 - (1+0.11)^-14 / 0.11 ]
Present value or current price of the stock = $68.42
Answer:
Treaty of Versailles
Explanation:
The terms which caused the most resentment in Germany were the loss of territory, the war guilt placed solely on Germany, the deliberate effacement of the German military and the demands of reparations.
Answered by NONE other than the ONE & ONLY #QUEEN herself aka #DRIPPQUEENMO!!!
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