Answer:
meeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
Explanation:
Answer:
To hedge the preferred stock position, the manager should: Buy tyx calls
Explanation:
When market interest rate rise preferred stock drop. To hedge using interest rate index option, <em>the contract must offer an offsetting profit during a period of rising interest rates. Therefore buy TYX calls. </em>These will continue to give ever increasing profit as market interest rate continue to rise. And it will offset the ever increasing loss that would be incurred on the XYZ preferred stock position as the market interest rate continues rising.
The hedge is that Any loss on preferred stock position would be offset by corresponding gain on the long interest rate index call position.
I think the correct answer from the choices listed above is options B. In a capitalist, market, or free-enterprise economy, it the economic experts who can answer the three basic economic questions since they a lot about the economy. Hope this answers the question. Have a nice day.
Answer:
$14.85
Explanation:
The computation of the price of the stock today is shown below
But before that following calculation need to be done
D1 i.e.next year's dividend is
= D0(1+g)
= 1.50(1.07)
= 1.605
Now growth rate is
= 7 % - 2%
= 5% or 0.05
D2 i.e. dividend year 2 is
= D1(1+g)
= 1.605(1.05)
= 1.6853
Now
growth rate is
= 5% - 2%
= 3% or 0.03
Terminal Cashflow; D3 is
= 1.6853 (1.03)
= 1.7359
Now the present value for each dividend would be
PV(D1) is
= 1.605 ÷ (1.14 )
= 1.4079
PV(D2) is
= 1.6853 ÷ (1.14^2 )
= 1.2968
PV of terminal cash flow (D3) is
= 1.7359 ÷ (14% - 3%) ÷ (1.14)^2
= 12.1429
And, finally the price of the stock today is
= $1.4079 + $1.2968 + $12.1429
= $14.848
= $14.85
Answer:[email protected]$65=$650
[email protected]$65=$975
...... Total =. 1625
Explanation:
Since the stock records are kept on periodic base that's at irregular interval on LIFO it's assumed that the. closing stock of inventory will be the opening stock since purchases were made during the year for production.