Answer:
The price of a 6-month call option on C.A.L.L. stock is $13.52
Explanation:
According to the given data we have the following:
P = Price of 6-months put option=$10.50.
So = Current price=$125
X = Exrecise price=$125
r = Risk free interest rate= 5%
T = Time 6 months = 1/2
In order to calculate the price of a 6-month call option on C.A.L.L. stock at an exercise price of $125 if it is at the money, we would have to use the formula of put-call parity as follows:
C=P+So- (<u> X )</u>
( 1+r)∧T
C=$10.50+$125-(<u>$125 )</u>
(1+0.05)∧1/2
C=$135.5-121.98
C=$13.52
The price of a 6-month call option on C.A.L.L. stock is $13.52
Answer:
7.71%
Explanation:
Calculation to determine the bond's nominal coupon interest rate
First step is to determine the PMT using Financial calculator
FV = $1,000
N= 25 × 2 = 50 periods ( semi-annual)
i/y=9.25/2=4.63
PV= - 850
PMT=?
Hence,
PMT=38.55
Second step is to calculate the Annual coupon Payment
Annual coupon Payment =38.55x2
Annual coupon Payement= 77.10
Now let determine the bond's nominal coupon interest rate using this formula
Nominal coupon rate= Annual coupon payment/par value
Let plug in the formula
Nominal coupon rate=77.10/1000
Nominal coupon rate=7.71%
Therefore the bond's nominal coupon interest rate is 7.71%
Answer:
$270,000
Explanation:
Data provided
Quantity of products = $280,000
Total fixed costs = $800,000
Unit sales price = $16
Variable cost = $12
The computation of units must be sold is shown below:-
Contribution per unit = $16 - $12
= $4 per unit
Units must be sold = (Quantity of products + Total fixed costs) ÷ Contribution per unit
= ($280,000 + $800,000) ÷ $4
= $1,080,000 ÷ $4
= $270,000
Answer:
$27.2
Explanation:
First we have to calculate the total estimated manufacturing overheads which shall be determined as follows:
Estimated total manufacturing overheads=Variable manufacturing overhead+ Fixed manufacturing overheads
Variable manufacturing overhead=Estimated labour hours*manufacturing overhead per labour hour
=75,000*$10.70=$802,500
Fixed manufacturing overheads=$1,237,500
Estimated total manufacturing overheads=$802,50+$1,237,500
=$2,040,000
Now we will compute the predetermined overhead rate which shall be determined using the following formula:
Predetermined overhead rate=Estimated total manufacturing overheads/Estimated labour hours
Predetermined overhead rate=$2,040,000/75,000=$27.2
Answer:
$14,000
Explanation:
Company X Company Y
cost per equipment $75,000 cost per equipment $65,000
sales price $105,000 sales price $91,000
Both companies sold one unit and they exchanged clients in order to reduce shipping cost:
company X income = $105,000 (selling price) - $75,000 (COGS) + $14,000 (money received from company Y) = $44,000
company Y's income = $91,000 (selling price) - $65,000 (COGS) - $14,000 (money given to company X) = $12,000
This exchange resulted in company X's income increasing by $14,000, while company Y's income decreased by $14,000
