Answer:
Matt and Sarah can withdraw the following two types of funds: higher education and medical expenses
. While they cannot withdraw any funds for their new home that they are moving into because that will cost them the 10% penalty.
Hope that answers the question, have a great day!
Answer:
The answer is $0.12 gain
Explanation:
We will be obtaining the no-arbitrage premium of the corresponding put as dictated by put-call parity, as follows: V P (0, K = 70, T = 0.5) = V C (K = 70, T = 0.5) + e rt K S(0) + P V 0,T (Dividends)
= 6.50 + exponential (0.03 70 74.20) + e (0.06 0.25 1.10) + e (0.06 0.5 1.10)
= 67.70 + 0.97 70 + 0.98 1.10 + 0.97 1.10
= 67.70 + 68.97 + 1.08 = 2.38.
Since we have decided to short the call at a premium higher by $0.12, the answer is $0.12 gain.
Thank you.
Answer:
Christie 's share = $ 37759.09
Jergens Share = $ 47,441
Explanation:
Partner's Profit share are calculated after the deduction of salary or any other interest incomes.
Profit for the current year = $ 163,000
Christie' s Salary $ 69,000
Christie Interest Income $ 3900
10 % 0f $ 390,000
Jergens Interest Income $ 4900
10 % 0f $ 490,000
Profit Balance $ 85,200
Profit Sharing Ratio
Christie : Jergens
390,000: 490,000
39: 49
Christie 's share = $ 85,200 * 39/88= $ 37759.09
Jergens Share = $ 85,200 * 49/88= 47440.9= $ 47,441
