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zepelin [54]
3 years ago
6

The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $95 per share for months, and you believe

it is going to stay in that range for the next 3 months. The price of a 3-month put option with an exercise price of $95 is $6.00.
If the risk-free interest rate is 9% per year, 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?
Business
1 answer:
miv72 [106K]3 years ago
5 0

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

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melisa1 [442]

Answer:

Using the shortcut keys Alt+O+R+A

Using Home/Cells/Format/Auto Fit Row Height

Double-clicking the bottom of the row number box

Explanation:

The excess row height could be resulted, if you set a row height manually. It can be fixed by some shortcut, or using the functions available in the Tabs.

You can fix this by Entering a short key of Alt+O+R+A. It will automatically adjust you row height according to format and data in the specific row.

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8 0
3 years ago
Baugh and Essary reports the following account balances: inventory of $17,600, equipment of $128,300, accounts payable of $24,70
Orlov [11]

Answer:

amount of current assets is $61400

Explanation:

given data

inventory = $17600

equipment = $128300

accounts payable = $24700

cash = $11900

accounts receivable = $31900

to find out

the amount of the current assets

solution

we know here that current assets have cash and inventory and account receivable and

account payable is current liability

and equipment is long term assets

so

we can say current assets will be

current assets = inventory + cash + account receivable ....................1

put here value

current assets = 17600 + 11900 + 31900

current assets = $61400

So, current assets = 11,900+17,600+31,900 = 61,400 (Answer)

4 0
3 years ago
An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2017 I
rusak2 [61]

Answer:

<u>Cost of goods manufactured schedule for the month ended June 30, 2017</u>

Raw Materials                                                 $46,720

Direct Labor                                                     $51,740

Manufacturing Overhead :

Indirect labor                                                     $6,510

Factory insurance                                            $4,700

Machinery depreciation                                  $4,380

Machinery repairs                                             $1,990

Factory utilities                                                 $3,740

Miscellaneous factory costs                            $1,980

Add Opening Work in process Inventory      $5,670

Less Closing Work in process Inventory       ($7,610)

Cost of goods manufactured                       $119,820

Explanation:

Cost of goods manufactured schedule is a summary of manufacturing costs for the production period.

<u>Determination of Raw Materials In Production</u>

Raw Materials T - Account

<u>Debit :</u>

Opening Balance                                     $9,180

Purchases                                              $55,020

Totals                                                     $64,200

<u>Credit :</u>

Work In Process (Balancing figure)       $46,720

Closing Balance                                      $17,480

Totals                                                      $64,200

8 0
3 years ago
Do you think leadership is more important or less important in today’s flatter, team-based organizations
Studentka2010 [4]
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7 0
3 years ago
Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 20,000 shares of 5%, $10 par non-cum
iragen [17]

Answer:

b) $10.000

Explanation:

In order to find the total preferred stock dividend we need to have the rate of the dividend, the par value of the preferred stock and the number of preferred stocks. In this question we are given the rate of the dividend of preferred stock which is 5%, we are also given the par value of the preferred stock which is $10 and we are also given the total number of preferred stock which is 20,000.

To find out how much dividend was distributed to preferred shareholders we need to use the formula

Rate of dividend*par value of stock * number of preferred shares

0.05*10*20,000= 10,000

6 0
3 years ago
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