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AnnZ [28]
3 years ago
5

Discount factor is 0.985. Stock XYZ is selling for $40 a share. An American option on this stock with a strike price of $38 is t

rading at $0.25 per share. If it is known that this option is priced above its intrinsic value, what type of option is it?
Business
1 answer:
weqwewe [10]3 years ago
5 0

Answer:

Put option

Explanation:

We have current price 40dollars - strike price 38dollars = $2. The question says the stock is trading at $0.25 per share. Since 0.25 is higher than 0 it is a put option. And the intrinsic value is $2.

The put option gives one the right to sell a particular number of shares at a price that has been set which is referred to as the strike price before a certain date.

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miv72 [106K]

Answer:

Incase of any emergency like an accident 5hey can support you

5 0
3 years ago
Rugged Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If
damaskus [11]

Answer:

$412,500

Explanation:

March

Cash receipts from sales on account for April = $400,000 * 75%

Cash receipts = $300,000

April

Cash receipts from sales on account for April = $450,000 * 25%

Cash receipts = $112,500

Total Cash receipts = Cash receipts from sales on account from March + Cash receipts from sales on account from April

Total Cash receipts = $300,000 + $112,500

Total Cash receipts = $412,500

5 0
3 years ago
A next monthly interest payment on a loan with a principal balance of $19,531 is $109.86. what is the interest rate on the loan?
8_murik_8 [283]

The next monthly interest payment on a loan with a principal balance of $19,531 is $109.86. 6.75% is the interest rate on the loan.

The interest rate is the percentage of the loan that the borrower pays to the lender. Most loans pay interest in addition to the principal. Lending rates are usually expressed in his APR or APR which includes both interest and fees.

Monthly Interest Payment means the amount of interest payable on the Payment Date for the preceding Interest Period based on the interest calculated at the Monthly Interest Rate for the preceding Interest Period.

Interest is an additional payment known as interest on top of the principal paid to a lender for the right to borrow money.

Learn more about monthly interest payment at

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7 0
2 years ago
When a labor union and an employer cannot agree on the terms of a contract what often happens?
vesna_86 [32]
A would be a good answer. 
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3 years ago
Your company started using a new shipping company two months ago. during your short relationship with the company, you notice th
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