T-bills currently yield 4.8 percent. Stock in Nina Manufacturing is currently selling for $85 per share. There is no possibility
1 answer:
Answer:
The correct answer is $18.206.
Explanation:
The yield percentage is given as 4.8%.
The stock price is given as $85.
The exercise price of the call option is given as $70.
Value of the call option will be
= Stock price- present value of the exercise price
=
= $85 - $66.79
= $18.206
So, the value of call option is $18.206.
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Answer:
see below
Explanation:
The balance in Lucia's account is 1.05 times the original deposit, reflecting addition of 5% interest for the year.
The ticket price is the original price multiplied by (1 + inflation rate). The number of tickets that Lucia can purchase is the account balance divided by the ticket price. The quotient is rounded down to the nearest integer.
The "real interest rate" is the percentage change from the original number of tickets that could be purchased.
