Answer: 2.09
Explanation:
Given the following ;
Strike price (K) = $50
Price (c) = $6
Rate (r) = 6% = 0.06
Stock price (So) = $51
Time (T) = 1
Recall, relation for a put-call parity(p) is given by:
p + So = c + Ke^-(rT)
p = c + [Ke^-(rT)] - So
p = 6 + [50e^-(0.06 × 1)] - 51
p = 6 + [50×e^-0.06] - 51
p = 6 + (50 × 0.9417645) - 51
p = 6 + 47.0882267 - 51
p = 53.0882267 - 51
p = 2.0882267
p = 2.09
Answer: The court would likely approve Elliot's request in the following situation: <u><em>The corporation was under-capitalized from the beginning, and never had sufficient assets to operate as a viable business.</em></u>
Under the given scenario i.e. for a breach of contract , the condition will apply if the corporation i.e. Acme Inc. was under-capitalized from the start, and they never had predominating assets to work as a viable organization.
<u><em>Therefore the correct option is (a)</em></u>
Answer:
The correct answer is letter "E": None of the above.
Explanation:
Microeconomics deals with the economic choices of individuals and small companies. Jointly, these individual decisions influence the demand for and supply of goods and services in the economy. One of the subjects most discussed in microeconomics is the supply, demand and equilibrium model.
A)<em> Global warming research turns out to correctly predict the weather in the future. (No major impact in economy)</em>
B)<em> The dictator of a country builds ten new airports. (Macroeconomic)</em>
C)<em> A child buys a delicious chocolate bar. (No major impact in economy)</em>
D) The country of Montenegro adopts the Euro. (Macroeconomic)
<em>None of the statements above represents a microeconomic phenomenon.</em>
Answer:
910.18
Explanation:
After Chin's down payment the amount borrowed is ...
(1 - 20%)($180,000) = 0.80·$180,000 = $144,000
The amount of the payment is given by the amortization formula ...
A = P(r/n)/(1 -(1 +r/n)^(-nt))
for P borrowed at rate r for t years, compounded n times per year.
A = 144000(0.065/12)/(1 -(1 +.065/12)^(-12·30)) = 910.18
The monthly loan payments will be 910.18.
Answer:
A. Investors can hedge against a price decline by buying a call option.
Explanation: Investment risk can be defined as the probability or likelihood of occurrence of losses relative to the expected return on any particular investment.
Buying a call option entitles the buyer of the option the right to purchase the underlying futures contract at the strike price any time before the contract expires. Most traders buy call options because they believe a commodity market is going to move higher and they want to profit from that move.
A call option is a contract the gives an investor the right, but not the obligation, to buy a certain amount of shares of a security at a specified price at a later time.
