1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Bess [88]
3 years ago
9

The current stock price of Alcoco is $70, and the stock does not pay dividends. The instantaneous risk-free rate of return is 6%

. The instantaneous standard deviation of Alcoco's stock is 40%. You want to purchase a call option on this stock with an exercise price of $75 and an expiration date 30 days from now. Based on the Black-Scholes OPM, the call option's delta will be __________.
Business
1 answer:
Mashutka [201]3 years ago
3 0

Answer:

0.31

Explanation:

current stock price $70

risk free rate = 6%

standard deviation = 40$

30 day call option $75

the simplest way to calculate delta (or stock position) is to use a scientific calculator, but if you want you can also do it manually:

delta = N(d₁) ⇒ cumulative normal distribution probability at d₁

with d₁ = [ln (S/K) + (r2  + σ ²/2)T] / σ√T

You might be interested in
When working with compressed air what psi should you reduce to if using the compressed air for cleaning?
Genrish500 [490]
The correct answer should be 30 because you don't want too much pressure .
4 0
4 years ago
Read 2 more answers
Which of the following is an example of the law of diminishing marginal​ returns? A. Holding capital​ constant, when the amount
Irina-Kira [14]

Answer:

The correct answer is option A.

Explanation:

The law of diminishing returns states that as we go on employing more and more unit of input while keeping other inputs constant, the return from each additional unit of input will go on declining.  

This means that the output produced from each additional unit of input will go on declining.

Here, as capital is kept constant and labor is increased by a unit, the output at first increases by 5 units from 20 to 25. But later when input is again increased by a unit, the output increase by only 3 units from 25 to 28.

This shows the law of diminishing marginal returns where the marginal returns from a unit of labor is declining.

3 0
3 years ago
For a recent 2-year period, the balance sheet of Blue Company showed the following stockholders’ equity data at December 31 (in
Misha Larkins [42]

Answer:

Par value of common stock is $2.5

Explanation:

The par value of common stock can determined by dividing the common stock total amount in each of the two years by the shares issued and outstanding in each year as demonstrated below:

2019:

Par value of common stock =Common stock($)/shares issued

common stock($) is $555 million

shares issued and outstanding is 222 million shares

par value of common stock=$555 million/222 million=$2.5

2020:

Par value of common stock =Common stock($)/shares issued

common stock($) is $560 million

shares issued and outstanding is 224 million shares

par value of common stock=$560 million/224 million=$2.5

Ultimately the par value of common stock as shown be computations for both years is $2.5

7 0
3 years ago
The credit balance in cash short and over at the end of an accounting period is reported as?
AVprozaik [17]

The credit balance in cash short and over at the end of an accounting period is reported as an expense on the income statement.

Income is the consumption and savings opportunity that a business captures within a specific time frame, usually expressed in money. Income is difficult to define conceptually and definitions vary by region.

The definition of income is the amount of money received by an individual, group or business during a specified period. An example income is an annual salary of $70,000.

Income is money received by an individual or business in return for providing work, producing goods or services, or investing capital. While individuals usually earn their income through wages or salaries, businesses generate income from the sale of goods or services that exceed their production costs.

Learn more about income here:brainly.com/question/25745683

#SPJ4

7 0
1 year ago
The marketing staff wants to supply pens with attached USB drives to clients. In the past this client has been victimized by soc
Firdavs [7]

Answer: C. The security risks associated with combining USB drives and cell phones on a network

D. The risks associated with the large capacity of USB drives and their concealable nature

Explanation:

Based on the scenario that has been discussed in the question, the security administrator will instructs the marketing staff not to supply the USB pens based on the security risks that are associated with combining USB drives and cell phones on a network.

Another reason is due to the risks that are associated with the large capacity of USB drives and their concealable nature.

Since the client has been victimized by social engineering attacks that led to a loss of sensitive data in the past, they'll be extra careful this time around.

4 0
3 years ago
Other questions:
  • Edna Boyle contracts with The Melonville Times to advertise her garage sale to be held this Saturday. The ad is to run in the Fr
    11·1 answer
  • The Oakland Mills Company has disclosed the following financial information in its annual reports for the period ending March 31
    15·1 answer
  • Match the pairs to their respective categories.
    6·1 answer
  • The best way to overcome a sincere need objection by a business prospect is to:
    7·1 answer
  • Why is it important to add images charts and graphs into reports? what is important to illustrate reports with visuals?
    6·2 answers
  • BCD Partnership plans to distribute cash of $20,000 to partner Brad at the end of the taxyear. BCD reported a loss for the year,
    15·1 answer
  • Suppose you believe that Florio Company's stock price is going to decline from its current level of $82.50 sometime during the n
    10·1 answer
  • 13. A firm hires its labor in a perfectly competitive factor (or resource) market and sells its product in a perfectly competiti
    11·1 answer
  • A company has an opportunity to make a bulk sale that would not impact regular sales or total fixed expenses. The variable cost
    14·1 answer
  • Taraneh wants to create a tutoring center for high school students. She develops a precise statement of the rationale for her bu
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!