Answer:
2 cents
Explanation:
The spot price = $0.7000 = 70 cents, The forward rate = $0.6950 = 69.5 cents and the call option with striking price = $0.6800 = 68.00 cents
The annualized six month rate = 3 1/2 % = 3.5 %, therefore the rate = r/n, where n is the number of period per year = 2. Therefore r/n = 3.5% / 2 = 0.035 / 2 = 0.0175
The minimum price = Maximum (spot price - striking price, (forward rate - striking price) / (1 + 0.0175), 0) = Maximum(70 - 68, (69.5 - 68)/ 0.0175, 0)
Minimum price = Maximum (2 , 1.47, 0) = 2 cents
Answer:
c) Provide potential benefits to both the issuer and the investor.
Explanation:
Convertible Bonds are Bonds that can be converted to Common Stocks at the the option of the investor or the issuer.
They represents the potential voting rights to the investor if they are converted to Common Stocks. This means the investor can take part in decision making of the company.
They also presents benefits to the issuer in that it reduces the financial risk of defaulting interest payments. This is good for the gearing ratio as well and can attract more investors.
Answer: $83050
Explanation:
Based on the information given in the question, the total reserves of First National Bank will be given as follows:
Total deposit = $675000
The Required reserve ratio will be:
= 675000 × 9%
= 675000 × 9/100
= $60750
Since the bank has excess reserves of $22,300, then the total reserve will be:
= $60750 + $22300
= $83050
The situation here is that the appraiser is:
- Taking a percentage for his services from the appraisal
Based on the given question, we can see than when an appraisal is made, the appraisal which is actually a written report that makes an estimate of the present value of a piece of property.
With this in mind, we can see that the appraiser preferred to take his payment from the percentage value of the <em>value of the property </em>which he appraised. This method is sure to give the appraiser more money than he would have made, especially if the value of the property was quite high.
Read more about appraisal reports here:
brainly.com/question/25088996
Answer:
Corporate Bonds and T-Bills will have return above 8%
Explanation:
given data
investments = 4
investment = 8 %
solution
first of all we get 95% confidence interval that is as
and here investment returns and standard deviation are attach so
95% confidence interval = Return - 2 × SD to Return + 2 × SD ................a
so here
we can see here as per table attach
here only Corporate Bonds and T-Bills will have return above 8%
