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Law Incorporation [45]
3 years ago
13

The exercise price of the options is $100 per share, all options are European, and the stock does not pay any dividend. The call

price is $25 per share and the put price is $17 per share. Both options mature in 2 years. Finally, the annual rate of interest is 5% with continuous compounding. What is the stock price today?
Business
1 answer:
defon3 years ago
3 0

Answer:

Stock Price is $98.70

Explanation:

given data

exercise price = $100 per share

call price = $25 per share

put price = $17 per share

mature time = 2 years

annual rate of interest = 5%

to find out

What is the stock price today

solution

we will use here Put Call Parity for find out Stock Price that is express as

C + \frac{100}{(1+r)^t} = S + P    .....................a

we know here that C is call price and r is rate and t is time and S is Stock Price and P is put price

so put all value in equation a

C + \frac{100}{(1+r)^t} = S + P

25 + \frac{100}{(1+0.5)^2} = S + 17

solve it we get

P = $98.70

so Stock Price is $98.70

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One Chicago has just introduced a new single stock futures contract on the stock of Brandex, a company that currently pays no di
bekas [8.4K]

Answer:

A: $127.2

B: $123.384, $3.816 per share and $3,816 per contract

C: 9.43%

Explanation:

A: Futures price

F° = S° (1 + rₙ) = $120 x 1.06

= $127.20

B: Change in Future Price and Investor Margin account:

New Spot = $120 (1 – 0.03)

= $120 x 0.97

= $116.40

New Futures = $116.40 (1.06)

= $123.384

The long investor loses = $127.20 - $123.384

= $3.816 per share

or $3.816 (1,000) = $3,816 per contract

C: Percentage return on the investor’s position:

Percentage return = $12,000 / $127,200

= 9.43%

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A __________ is an example of an external user of financial information.
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Sponsors often advertise their own brands alongside the athlete’s or entertainer’s.
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Answer:

royalties

Explanation:

According to my research on franchised businesses, I can say that based on the information provided within the question in business this obligation is referred to as royalties. These is an obligation in which the franchisee agrees to pay the franchiser a set percentage of the profits made under the licensed company. Like seen in the question the royalty percentages depend on the company as well as what is agreed upon when signing the licensing agreement.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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Answer: The answer is provided below

Explanation:

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A person that has a poor credit score due to the amount of debt on credit card and instalment loans can improve his or her score by paying off the debt. When an individual pays of his or her debt, the person will have an improved credit score which can be used to apply for further loans.

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