Answer:
The price of a one-year European put option on the stock with a strike price of $50 is $2.09
Explanation:
As, the call and the put option is of the same asset class, we apply call-put parity to find the price of the European put option.
The call-put parity function is:
C + PV(x) = P + S; in which:
C: Price of the call option = $6;
PV(x) : present value of strike price = Strike price in one year / e^6% = 50/e^6% = $47.09
P: price of the put option
S: spot price of the asset = $51
=> P = C + PV(x) - S = 6 + 47.09 - 51 = $2.09.
Answer:
$87,567.14
Explanation:
For computing the amount deposited for attaining the goal we need to apply the present value which is to be shown in the attachment
Provided that,
Future value = $300,000
Rate of interest = 8%
NPER = 16 years
PMT = $0
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value is $87,567.14
Answer:
establish a clear set of guidlines for employees to follow
Explanation:
Answer:
$21,800
Explanation:
The computation of 4-year revenue is as shown below:-
Bond Income of 4th Year = Face amount × Bond × 1 ÷ 2
= $500,000 × 8% × 1 ÷ 2
= $20,000
Interest Revenue = Bond Income + Amount of Discount Amortized
= $20,000 + $1,800
= $21,800
Therefore for computing the interest revenue we simply bond income with the amount of discount amortized.
