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kolbaska11 [484]
3 years ago
12

A one-month European call option on a non-dividend-paying stock is currently selling for $1. The stock price is $47, the strike

price is $50, and the risk-free rate is 6% per annum (continuously compounded). What is the time value of a one-month European put on the same stock with the same strike price?
Business
1 answer:
REY [17]3 years ago
4 0

Answer:

The price of the put-option on the same stock with the same strike price is $3.75.

Explanation:

To find the price of the put option on an underlying asset given the price on the call option's price for the same underlying asset with the same strike price is given, we apply put-call parity model.

Put call parity model: p = K x e^(-rT) + c - St .

in which: p: put option's price;

               K: underlying asset's strike price;

               r: risk-free rate;

              T: time to maturity denominated in year;

               c= call option's price;

              St = spot price of underlying asset .

So, p = 50 x e^(-0.06 x 1/12) + 1 - 47 = $3.75 .

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Adaptive selling and consultative selling are the two common types of the need-satisfaction presentation format.

<h3>What is adaptive selling and consultative selling?</h3>

Every person is unique, as are the circumstances surrounding the sale of any product. A selling technique that is used according to the situation that is all customized by involving or adapting to the customer's communication style is known as adaptive selling.

In the consultative selling technique, the focus of the salesman is not on the number of products that are being sold out. The main focus is on the availability of solutions that are tailored to the customer's needs. In this type of selling, a salesman learns more about a customer's needs in a better and more effective way.

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1. Explain the concept of opportunity cost with an appropriate example.<br>​
inn [45]

Answer:

Concept & example of Opportunity Cost

Explanation:

Opportunity Cost is the cost of next best alternative foregone, while choosing an alternative. This arises because of 'choice' problem, due to unlimited wants & limited resources - having alternative uses.

Eg : If I can have 2 chapatis or a bowl of rice. And, I eat a bowl of rice. Then, 'opportunity cost' of a rice bowl is - the next best available '2 chapattis' foregone for the former.

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3 years ago
If P denotes the price of goods and services measured in terms of money, then:________.
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The answer is A for sure
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Peter owns an auto dealership. Peter hires Cara as a receptionist, Ben as a salesperson, Stacy as a mechanic, and the "Clean as
drek231 [11]

Answer:

d. Emeralda from " Clean as a Whilte Co." runs over patty Pedestrain in the dealership's parking lot.

Explanation:

Liability is the degree to which a person is responsible for injury that happens to another party in a lawsuit. Peter owns an auto dealership. Peter hires Cara as a receptionist, Ben as a salesperson, Stacy as a mechanic, and "Clean as a Whistle Co." as cleaners.

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Which of your needs are not being met by businesses and/or nonprofit organizations in your area? Are there enough people with si
mash [69]

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Explanation:

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