The TASB, is the Texas Association of School Boards. A bond is an agreement between a company and a person or two or more people on the purchase of an item, most of the times known as a bond. In this case, the agreement is between the school district and the bond holder. The district pays the bondholders interest and the bond holder receives a tax write off for donating to the school district.
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.
Answer:
Goldsmiths were the first bankers, and the paper receipts they issued for gold held on deposit became valued as money.
Explanation:
Italian goldsmiths were the first bankers in the world, even the name bank derives from the Italian "banca". Since they had safe vaults, they kept the gold savings from their rich clients, and they started to lend money to other people who needed it. They developed the fractional reserve system because they were able to actually lend more money than the amount of gold that they had in their vaults.
London goldsmiths followed a similar path and they added their own inventions, the check or "cheques" and money transfers.
The closest answer to all the choices would be communism. communism's principle revolves around everyone having equal of everything. this means that the government will decide how each good and each service is produced and given to people.
