Answer:
Call payoff = Max [0, Stock price - Strike price]
Call payoff = Max[0,25-20]
Call payoff = 5
Put payoff = Max[0, strike price - stock price]
Put payoff = max[0,20-25]
Put payoff = 0
Strike price = K = 20
Stock price = S = 25
interest rate = 10% = 0.1
Time to expiry = T = 3 months = 3/12 = 0.25
Put call parity: C + K*Exp(-r*T) = P + S
C = P + S - K*Exp(-r*T)
Call = 3 + 25 - 20*exp(-0.1*0.25)
Call = 28 - 19.5062 =
Call = 8.4938 > 3
So, yes there is an arbitrage
. Implied value is 8.4938 but trades at 3.00; Call option is trading cheap hence we should buy more call options.
A consolidation loan is intended to help consumers who have an unhealthy credit situation caused by overusing their credit. Thus the correct option is D.
<h3>What is a loan?</h3>
An amount given by any financial institution to any individual in advance on a certain rate of interest that they need to repay during the given time is called a loan.
A consolidation loan is meant to assist individuals with credit problems brought on by excessive credit use. A debt reduction approach known as a debt consolidation loan is taking out a new loan to settle a number of bills.
Therefore, option D is appropriate.
Learn more about the consolidation loan, here:
brainly.com/question/29305748
#SPJ1
The complete question is probably
A _____ loan is intended to help consumers who have an unhealthy credit situation caused by overusing their credit.
a. personal
b. single-payment
c. buy-down
d. consolidation
e. standard
Answer:
D) $320,000
Explanation:
We are given the following information:
- unit price = $25 per frame
- variable costs = $12 per frame
- fixed costs = $50,000 for 25,000 frames or $2 per frame
If Frames is able to sell 30,000 frames in one month, their operating income should be:
Total sales revenue $750,000 (= $25 per frame x 30,000 frames)
<u>COGS -$430,000 [= (30,000 x $12) + $70,000] </u>
Gross operating profit $320,000
The main factor which Herzberg studied uh job related factors was their relationship to motivation.
<h3>What is Motivation? </h3>
This refers to the factors which spurs on a person to behave in a certain way or perform certain tasks.
With this in mind, we can see that Herzberg was an expert in motivation and their effect on people and he evaluated job related factors.
Read more about motivation here:
brainly.com/question/11871721
Could you possibly explain the question better bro?
