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Alinara [238K]
3 years ago
9

Three weeks ago, you purchased a July 45 put option on RPJ stock at an option price of $3.20. The market price of RPJ stock thre

e weeks ago was $42.70. Today, RPJ stock is selling at $44.75 a share and the July 45 put is priced at $.80. What is the intrinsic value of your put contract
Business
1 answer:
Anton [14]3 years ago
5 0

Answer:

$25

Explanation:

We can calculate intrinsic value by intrinsic formula

Formula : intrinsic Value = (purchased price- current price) x 100

intrinsic Value = (45-44.75) x 100

intrinsic  Value =  $25

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Knowledge check <br> what are the possible weaknesses of this peer approach to valuation?
kolbaska11 [484]

Answer:

The growth which is estimated is wrong.

Explanation:

The Prospective price to earning ratio P/E multiples are calculated using future earnings. In that way, they can be dramatically wrong. Relative valuation is quick and easy. It compares industry peer.

7 0
3 years ago
X-treme Vitamin Company is considering two investments, both of which cost $22,000. The cash flows are as follows: Year Project
olga2289 [7]

Answer:

0.88 year and 1 year

Explanation:

The computation of the payback period for Payback period for Project A and Project B is shown below:

Payback period = Initial investment ÷ Net cash flow

For Project A

Initial investment = $22,000

Year 1 = $25,000

Since the initial investment is less than the annual cash flows so the payback period is

= 0 years + ($22,000 ÷ $25,000)

= 0.88 years

For Project B

Initial investment = $22,000

Year 1 = $22,000

So, the payback period is

= $22,000 ÷ $22,000

= 1 year

4 0
3 years ago
CAN SOMEONE HELP ME PLEASE? I ATTACHED THE QUESTION <br> THANKS!!!
Aleks [24]

Answer:

The formula for each month is described below:

January +(B2*31*C2)+(B2*$A$12)

February +(B2*29*C2)+(B2*$A$12)

March +(B2*31*C2)+(B2*$A$12)

April +(B4*30*C4)+(B4*$A$12)

May +(B3*31*C3)+(B3*$A$12)

Explanation:

The formula matches the requirements for each individual month as number of days change accordingly and $A$12 determines the fixed transport cost the other variables are the number of boxes and the cost per box.

5 0
3 years ago
A court-ordered ______________ was imposed on fairlawn city employees who worked on the city's streets and bridges. although the
melisa1 [442]

A court-ordered injunction was imposed on Fairlawn city employees who worked on the city's streets and bridges.

A court order which require a person to do or stop doing any specific action is called injunction and it has three types Permanent Injunctions,<span> Temporary restraining orders</span> and preliminary injunctions<span>.</span>

8 0
3 years ago
You plan to save $360 per month starting today for the next 45 years "just to start the month off right." You feel that you can
aleksandrvk [35]

Answer:

$213451.2

Explanation:

9.8% of the savings monthly

9.8/100 X 360

35.28

total monthly savings = 360 + 35.28

= 395.28

So, for the next 45 years, total amount in account

= 45 X 12

= 540 months

Total account for 45 years

= 540 X 395.28

= $213451.2

5 0
3 years ago
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