Answer:
The value of the call option today is $7.73
Explanation:
The value or price of the call option under the two state model is calculated based on the assumption that there is no opportunity for arbitrage profit. The value of call option will be based on the return in case the call option is exercised and the probability of earning that return.
The strike price is $105
The return if price goes to $122 and option is exercised is 122 - 105 = $17
The return if the price goes down to $88 will be 0 as the call option will not be exercised.
Thus, the expected return is = 0.5 * 17 + 0.5 * 0 = $8.5
This return will be earned after 1 year. To calculate the value of the call option today, we need to discount this return to present value using the risk free rate.
V0 or value today = 8.5 / (1+0.1) = $7.727 rounded off to $7.73
Answer:
The journal entry is as follows:
Cash A/c Dr. $51.45
To Paid in capital in excess of par value A/c $51.42
To Common shares A/c $0.03
(To record the sale of the shares)
Note: The amount mentioned in debit and credit column in the above journal entry are in the millions of dollar.
Workings:
Cash = Shares sold × shares closing price
= $3 million × $17.15
= $51.45 million
Common shares = Shares sold × Par value per share
= $3 million × $0.01
= $0.03 million
Paid in capital in excess of par value = Cash - Common shares
= $51.45 - $0.03
= $51.42
The organization that does not provide free or loss cost training and counseling associated with the Small Business Association is IBRD.
<h3>What is Small Business Association?</h3>
A Small Business Association are agencies that provides resources (like capital, skill, advice) to small businesses for innovation, growth etc
SCORE, VBOC and WBC are all agencies that provide free mentoring services, free training, loss-cost training, counseling etc
Hence, the organization that does not provide free or loss cost training and counseling associated with the Small Business Association is IBRD
Therefore, the Option A is correct.
Read more about Small Business Association
<em>brainly.com/question/2072884</em>
11: no, it is not right for them to do so.
12: many antivirus producers promote their products through the fear of computer viruses. But these antiviruses often aren't effective.
Answer:
because of supply and demand.
