Answer:
Call payoff = Max [0, Stock price - Strike price]
Call payoff = Max[0,25-20]
Call payoff = 5
Put payoff = Max[0, strike price - stock price]
Put payoff = max[0,20-25]
Put payoff = 0
Strike price = K = 20
Stock price = S = 25
interest rate = 10% = 0.1
Time to expiry = T = 3 months = 3/12 = 0.25
Put call parity: C + K*Exp(-r*T) = P + S
C = P + S - K*Exp(-r*T)
Call = 3 + 25 - 20*exp(-0.1*0.25)
Call = 28 - 19.5062 =
Call = 8.4938 > 3
So, yes there is an arbitrage
. Implied value is 8.4938 but trades at 3.00; Call option is trading cheap hence we should buy more call options.
D. Your school may have job postings from employers interested in hiring students.
Answer:
$25,200 and $58,800
Explanation:
The computation of the depreciation expense and the book value using the sum-of-the-years'-digits method is shown below:
The depreciation expense is
= (Purchase cost - residual value) × useful life ÷ (sum of years)
= ($84,000 - $8,400) × 5 years ÷ (1 + 2 + 3 + 4 + 5)
= $75,600 × 5 years ÷ 15 years
= $25,200
And, the book value is
= Purchase cost - depreciation expenses
= $84,000 - $25,200
= $58,800
We simply applied the above formulas
The research method allows for in-depth feedback and first-hand interaction, but only measures how easy it is to use a product, is the usability study.
<h3 /><h3>What is the Usability Study?</h3>
Corresponds to a research practice used by companies to test the use of a product before its official launch, making it available to a small number of users to test its features, benefits and improvement needs.
Therefore, the usability study helps a company to achieve its real goals, improving some features and improving it until its market launch.
Find out more about usability study here:
brainly.com/question/26180564
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