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riadik2000 [5.3K]
3 years ago
8

Research suggests that option-pricing models that allow for the possibility of ___________ provide more accurate pricing than do

es the basic black-scholes option-pricing model.
Business
1 answer:
Anni [7]3 years ago
3 0
   early exercise and time varying stock price votality. hope that helped
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An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 9% yields, what yield must municipals
Mkey [24]

Answer:

after tax yield on corporate bonds  = 6.3 %

Explanation:

given data

federal plus state tax bracket = 30%

corporate bonds  yields = 9%

solution

we get here yield that must municipals offer for the investor is express as

after tax yield on corporate bonds = corporate bonds  yields × ( 1 - federal plus state tax bracket  )   ......................1

put here value and we will get

after tax yield on corporate bonds = 9% × ( 1 - 30% )

after tax yield on corporate bonds = 0.09 × ( 1 - 0.30 )

after tax yield on corporate bonds  = 0.063

after tax yield on corporate bonds  = 6.3 %

7 0
3 years ago
Grossnickle corporation issued 20-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000 one year ago. today,
Dima020 [189]
Bond valuation: 
<span>Par value = Maturity value = FV = $1,000 </span>
<span>Coupon rate = 7.5% </span>
<span>Years to maturity = N = 19 </span>
<span>Required rate = I/YR = 5.5% </span>
<span>(Coupon rate)(Par value) = PMT = $75 </span>
<span>PV = $1,232.15</span>
5 0
3 years ago
Schnusenberg Corporation just paid a dividend of D 0 = $0.75 per share, and that dividend is expected to grow at a constant rate
natta225 [31]

Answer:

Current stock price will be $14.50

So option (a) will be correct answer

Explanation:

We have given dividend paid D_0=$0.75\ per\ share

Growth rate g = 6.5 %

Required return on market = 10.50 %

Risk free return = 4.50 %

\beta =1.25

So next dividend D_1=0.75\times (1+0.065)=$0.798

We have to find thcompany current stock price P_0

Required rate of return is given by

Required rate of return =  Risk Free Return + \beta (market\ return-risk\ free\ return)

= 4.5+1.25×(10.5-4.5) = 12 %

Now current stock price P_0=\frac{D_1}{R_e-g}=\frac{0.798}{0.12-0.065}=$14.50

So option (a) will be correct option

3 0
4 years ago
The voting age should be lowered? Why?​
marissa [1.9K]

Answer:

This is a two way question.

Explanation:

Voting is a privilege given to adults once they are 18 or older because that is the legal age that you are no longer considered a minor. I do not think children should be able to vote because they are obviously to young to have such responsibility as choosing the best candidates for the job, I do however believe that children and adults should be given the education and knowledge of political stances and parties whenever possible, to provide a higher percentile of average people to vote and actually know what they are voting for. This question is and should be considered a strictly opinionated topic.

6 0
3 years ago
One strength of the team leadership model is ______. a. its complexity b. its application to real-life organizations c. changes
nadezda [96]

Answer:

B. its application to real-life organizations

Explanation:

The answer to this is most likely B because the strength of the team leadership model is application to real-life organizations.

6 0
3 years ago
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