<u>Explanation:</u>
Note that<em> call options</em> are simply contracts or tradable assests that gives owners the right to buy the stock at a certain price. While <em>a financial manager</em> is someone task with managing the assets of an investor in a company.
Knowledge of call options will allow the financial manager to sucessfully work with stocks, warrants (recently issued shares of stock), and convertible securities (such as debts been replaced with common stocks).
This would be Nonmaterial Culture as it means a group's ways of thinking (including its beliefs, values, and other assumptions about the world) and doing (its common patterns of behavior, including language and other forms of interaction) this is also called symbolic culture.
Answer:
B. Imposed Non Exchange Transactions
Explanation:
A non exchange transaction is a form of transaction whereby a party or a group or an individual receives something of value without directly giving value back in exchange. In non exchange transactions, a party gives value to another without directly receiving approximate value in exchanges. Grants, taxes, special assessments, fines and so on are all parts of non exchange transactions. However, taxes and fines are imposed non exchange transactions because they are assessed and not derived from transactions.
Answer:
$6,000
Explanation:
Data given in the question
Sale value of the furniture = $120,000
Interest rate = 10%
So by considering the above information, the interest recorded is
= Sale value of the furniture × interest rate × number of months ÷ total number of months in a year
= $120,000 × 10% × 6 months ÷ 12 months
= $6,000
The six months is calculated from June 30 to December 31 and we considered the same for the above calculation
Answer:
you should hold <u>76</u> shares of stock per 100 put options to hedge your risk.
Explanation:
Current stock price, S = $85
Risk-free rate of return, r = 5%
Standard Deviation, v = 25%
Exercise price, X = $90
expiration date, t (in years) = 30 days = 1 month = 1/12 = 0.083333 years
The option price (OP) is given by the formula:
![d_1 = [ln(S/X) + (r + v^{2} /2)t]/vt^{0.5}\\d_1 = [ln(85/90) + (0.05 + 0.25^{2} /2)*0.08333]/(0.25*0.08333^{0.5})\\d_1 = -0.6982](https://tex.z-dn.net/?f=d_1%20%3D%20%5Bln%28S%2FX%29%20%2B%20%28r%20%2B%20v%5E%7B2%7D%20%2F2%29t%5D%2Fvt%5E%7B0.5%7D%5C%5Cd_1%20%3D%20%20%5Bln%2885%2F90%29%20%2B%20%280.05%20%2B%200.25%5E%7B2%7D%20%2F2%29%2A0.08333%5D%2F%280.25%2A0.08333%5E%7B0.5%7D%29%5C%5Cd_1%20%3D%20-0.6982)
Using the pro-metric calculator for the cumulative normal distribution:
N(-d1) = N(- (-0.6982)) = N(0.6982) = 0.75747
N(-d2) = N(-(-0.7704)) = N(0.7704) = 0.77947
![OP =[ 90e^{(-0.05*0.08333)} * 0.77947] - (85*0.75747)\\OP = 5.48](https://tex.z-dn.net/?f=OP%20%3D%5B%2090e%5E%7B%28-0.05%2A0.08333%29%7D%20%2A%200.77947%5D%20-%20%2885%2A0.75747%29%5C%5COP%20%3D%205.48)
Note that N(-d₁) = 0.76
This means that 76/100 (i.e to hedge your risk, you should hold 76 per 100 put options )
