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Diano4ka-milaya [45]
3 years ago
13

A put option with several months until expiration has a strike price of $55 when the stock price is $50. the option has _____ in

trinsic value and _____ time value.
Business
1 answer:
yaroslaw [1]3 years ago
7 0
I had to look for the options and here is my answer:
Based on the blanks provided above, the answers would be ZERO and POSITIVE, respectively. Therefore, in a call option that has many months until it expires has a strike price of $55 when the given price of the stock is $50. Therefore, the option has ZERO intrinsic value and POSITIVE time value.
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Which would be the best caption for this photo? Globalization: Interconnection in the Modern World. Trade and Transportation: Re
mamaluj [8]
Global Interconnectedness refers to the ability to understand and function in an increasingly multicultural, international, yet interconnected environment. It fosters the development of individuals to become successful professionals, civic leaders, and informed citizens in a diverse national and global society
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2 years ago
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Problem 11-6 Risk Premiums (LO1)Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Mark
Sedaia [141]

Answer:

Year _______Risk Premium (%)

2011 _______ 0.95

2012_______ 16.01

2013_______ 32.99

2014_______ 12.66

2015_______ 0.46

Explanation:

The Risk premium is the premium paid to an investor for investing in a risky stock/security/asset over the risk-free rate in the market.

A Risk-free rate is a rate that is offered by a security having minimum or no risk at all e.g. Rate on Government securities are considered as the risk-free rate because these securities are backed by the government.

T bills or Treasury bills are also considered as risk-free investments.

Use following formula to calculate the Risk premium

Ris premium = Stock Market Return - T-Bill Return

Use above formula Calculate the risk premium as below

Year _ Stock Market Return (%) __T-Bill Return (%)__ Risk Premium (%)

2011 _______ 0.98 _______________0.03 _________ 0.95

2012_______ 16.06_______________0.05 _________ 16.01

2013_______ 33.06_______________0.07 _________ 32.99

2014_______ 12.71 _______________ 0.05  _________ 12.66

2015_______ 0.67 _______________ 0.21 __________  0.46

6 0
3 years ago
The extra costs incurred to avoid holding cash when there is inflation are called the?
Ipatiy [6.2K]

The extra costs incurred to avoid holding cash when there is inflation is called Shoe Leather cost.

<h3>What do you understand by inflation?</h3>

The rate of price growth over a set time period is known as inflation. Sometimes the amount of inflation is expressed in general terms, such as the overall rise in price or the rise in the cost of living nationwide. However, it can also be calculated with more accuracy for some goods, such as food, or for services, like a haircut, etc. In any circumstance, inflation refers to how much the necessary array of goods and/or services has increased in price during a specific time period, most usually a year.

To know more about inflation, visit:

https://brainly.in/question/22101526

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8 0
2 years ago
List the steps, in order, to becoming a fashion designer: 1. Gain some business knowledge 2. Have a runway show 3. Have an inter
lidiya [134]

Answer:

a) 3, 1, 4, 5, 7, 6, 8, 2

Explanation:

3. Have an interest in fashion

This is the most important thing because you are going to do what you like to do.

1. Gain some business knowledge

It is important to gain knowledge in the area you want to work.

4. Become an intern

This allows you to work with people that knows the fashion world and to gain experience.

5. Go to a design school

One of the most important things to do to work in an area is to study and gain knowledge about it.

7. Build a portfolio of designs

This is the way for other people to know your work.

6. Get a job as a designer’s assistant

Gain more experience, now as a professional.

8. Open your own store with your designs

Once you have acquired experience and knowledge you are ready to have your own store.

2. Have a runway show      

This step to give the others the opportunity to buy your designs.

8 0
3 years ago
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