Answer:
Explanation:
Put Delta = call delta - 1 = 0.582 - 1 = -0.418
No of Options = (-11.2 million / (-0.418 × 1402)) × 1.32 = 25,227 options
No of Contracts = 25,227 / 100 = 252 contracts
Answer:
The sacrifice ratio could be as small as 0
Explanation:
The Sacrifice Rate is the loss of output due to the fight against inflation, and can be expressed as how much product is lost to reduce inflation by 1 percentage point. The Sacrifice Rate is a proposition by economist Robert Lucas Jr, who noted that the slowdown in long-term inflation is associated with a reduction in the production of goods and services over a period of time until economic agents adapt to the new reality. pricing and restructuring their expectations of the economy. Therefore, the social cost of fighting inflation is a reduction in GDP and an increase in the unemployment rate.
Because of this, we can conclude that if policymakers are committed to reducing inflation and rational people understand this commitment and quickly reduce their inflation expectations, the sacrifice rate can be as low as 0.
Answer:
Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.
Explanation:
To calculate this, let B represents the number of shares Neutrino Industries must sell. Therefore, we have:
Gross proceeds = $49 * B, or $49B
Underwriter charges = 6% * $49B = $2.94B
To raise $400 million, we deduct the underwriter charges from gross proceeds and solve for B as follows:
$49B – $2.94B = $400,000,000
$46.06B = 400,000,000
B = 400,000,000 / 46.06
B = 8,684,324.79 shares, or 8.68 million shares.
Therefore, Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.
Answer:
financial accounting and management accounting
