Answer:
The price of 3 months call option on stock is 8.03.
Explanation:
Acording to the details we have the following:
P = Price of 3-months put option is $6
So = Current price is $95
X = Exrecise price is $95
r = Risk free interest rate is 9%
T = Time is 3 months=1/4
C=Price of call option?
Hence, to calculate what must be the price of a 3-month call option on C.A.L.L. stock at an exercise price of $95 if it is at the money, we have to use the formula from put-call parity.
C=P+So-<u> X </u>
(1+r)∧T
C=$6+$95- ( <u>$95 )</u>
(1+0.09)∧1/4
C=$6+$95-$92.97
C=8.03
The price of 3 months call option on stock is 8.03
Answer:
The opportunity cost is the income earned from her balance on savings account at the interest rate of 3% per year that Reece would received if she had not opened her owned brewery business. This opportunity cost is $600 per year.
Explanation:
Please find the below for further explanation and calculations:
The opportunity cost per one year = Income earned on saving account per one year = 20,000 x 3% = $600;
The reason why it is an opportunity cost is because as a result of opening brewery business, Reece sacrifices the income earned on this saving, instead, she contributes the saving fund to her brewery business.
Answer:
The amount of the impairment = $3,150.
Explanation:
a) Data and Calculations:
Net cash flows = $63,000
Fair value of copyright = $59,850
Accumulated amortization = $15,435
Impairment gain = $3,150 ($63,000 - $59,850)
b) There is an impairment gain of $3,150 since the net cash flows is higher than the fair value of the copyright. Copyright is an intangible asset and impairment assessment must be conducted yearly.
Answer: D. integrated marketing communication.
Explanation: In integrated marketing communication, it blends the company promotion effort to convey messages that are complete and consistent is a goal to achieve.
Integrated marketing communication is a concept that make sure all forms of messages and communication are linked together. It involves Integrating all promotion tool so it all can work together.
