Answer:
a) Call option = Stock price - present value of the exercise price
= $87 – [$76 ÷ 1.05]
= $14.62
b) The intrinsic value is the amount by which the stock price exceeds the exercise price of the call, so the intrinsic value is
= $87 - $76
=$11
c) Call option = Stock price - present value of the exercise price
= $87 – [$68 ÷ 1.05]
= $22.24
d) The intrinsic value is the amount by which the stock price exceeds the exercise price of the call, so the intrinsic value is
= $87 - $68
=$ 19.
e) The value of the put option is $0 because there's no chance the put exhausts the money.
f) The intrinsic value is also $0
Explanation:
<span>Approximately 43,000 people die annually on the roads of the united states. The number of cars continues to grow. 200,000 in 1990 225,000 in 2000, 250,000 in 2010. The amount of time people commute continues to grow. The number of deaths per year is constant due to improved safety equipment.</span>
Answer:
idk i'm just trying to get my brainly points up
Explanation:
Answer:
Liberal
Explanation:
The New Deal was a policy providing government funded jobs and programs to pull the US economy out of the Great Depression. <u>Modern liberalism</u> is focused on using the same <em>concepts </em>- government spending and social programs- to redistribute wealth and help poorer people have a stable life.
Answer:
Explanation:
The option that is not a lump sum speaks of an Annuity. A series of payments over a time.
The way to calculate this question is thus to find out how much the total value of that Annuity would be today. That figure is how much you should accept TODAY as a lump sum as opposed to going 20 years receiving $35,000.
The Present Value of an Annuity formula is this,
= Annual Payment*(1-(1+r)^-n)/r
r is the rate
n is the number of periods
= 35000*(1-(1+0.06)^-20)/0.06
= $401,447.24
Therefore, the minimum amount you should take as a lump sum today would be $401,447.24 because anything less and the other option is a better option.
Please do react or comment if you need any clarification. Thank you.
