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Marianna [84]
3 years ago
9

We will derive a two-state put option value in this problem. Data: S0 = 180; X = 190; 1 + r = 1.1. The two possibilities for ST

are 210 and 110.a. The range of S is 100 while that of P is 80 across the two states. What is the hedge ratio of the put?(Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Hedge ratio b-1. Form a portfolio of 4 shares of stock and 5 puts. What is the (nonrandom) payoff to this portfolio?(Round your answer to 2 decimal places.) Nonrandom payoff $ b-2. What is the present value of the portfolio? (Round your answer to 2 decimal places.) Present value $ c. Given that the stock currently is selling at 180, calculate the put value. (Round your answer to 2 decimal places.) Put value $
Business
1 answer:
lawyer [7]3 years ago
7 0

Answer:

Answer:This is an incorrect picture

Explanation:By brainly

Explanation:

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Hurricane Industries had a net income of $129,650 and paid 40 percent of this amount to shareholders in dividends. During the ye
oksano4ka [1.4K]

Answer:

a. 28390

Explanation:

Stockholders cash flow is the net of cash inflows from stockholders and cash outflows to stockholders.

Net Income = $129,650

Payout Ratio = 40%

Cash outflow

Amount of Dividend Paid = $129,650 x 40% = $51,860

Cash Inflow

Common stock issue = $80,250

Net Stockholder's cash flow = $80,250 - $51,860

Net Stockholder's cash flow = $28,390

8 0
3 years ago
Read 2 more answers
Sara, a security analyst, is trying to prove to management what costs they could incur if their customer database was breached.
djyliett [7]

Answer:

Total estimated breached cost = $3,750

Explanation:

Given:

Total records database contain = 250 record

Cost per record for a breach = $300

Estimated breached record = 5% = 0.05

Total estimated breached cost = ?

Computation of total estimated breached record :

Total estimated breached record = Total records database contain × Estimated breached record

Total estimated breached record = 250 × 0.05

Total estimated breached record = 12.5

Computation of total estimated breached cost:

Total estimated breached cost = Total estimated breached record × Cost per record for a breach

Total estimated breached cost = 12.5 × $300

Total estimated breached cost = $3,750

7 0
3 years ago
A HEADLINE article in the text indicated that North Korea is expanding its missile programs, and at the same time it is running
laiz [17]

Answer:

Opportunity cost

Explanation:

NK is taking this opportunity to expand its missile programs at the expense of food production.

7 0
3 years ago
Lasso Corporation manufactures a product with the following full unit costs at a volume of 4,000 units: Direct materials $ 200 D
ruslelena [56]

Answer:

Increases by $66,800.

Explanation:

Given that,

Direct materials = $ 200

Direct labor = 80

Manufacturing overhead (30% variable) = 150

Selling expenses (50% variable) = 50

Administrative expenses (10% variable) = 80

Total per unit = $560

If accept this offer,

Total cost:

= Material + Labor + Manufacturing overhead + Administrative

= $200 + $80 + (30% × 150) + (10% × 80)

= $200 + $80 + $45 + $8

= $333

Contribution margin per unit:

= Selling price - Variable cost

= $500 - $333

= $167

Increase in profits:

= Contribution margin per unit × Number of units offer to purchase

= $167 × 400 units

= $66,800

7 0
3 years ago
TB MC Qu. 04-126 Juniper Company uses a perpetual inventory... Juniper Company uses a perpetual inventory system and the gross m
Sholpan [36]

Answer:

The journal entry to record the purchase on August 7 is:

Debit Merchandise $9,750

Credit Accounts Payable $9,750

Explanation:

The terms of 1/10, n/30 means 1% discount for the payment within 10 days and the full amount to be paid within 30 days.

The company purchased $9,750 of merchandise on August 7, returned $1,500 worth of merchandise on August 11, paid the full amount due on August 16 and received the discount. Juniper Company uses the gross method of accounting for purchases. Following accrual accounting method, the journal entry to record the purchase on August 7 is:

Debit Merchandise $9,750

Credit Accounts Payable $9,750

3 0
3 years ago
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