Answer:
$75.01
Explanation:
Given:
- Call price (C): $4
- Put price (P): $2.5
- risk-free rate (r): 2% = 0.02
- Time: 1 year
- Exercise price (K): $75
Let Share price: 
As per put-call party, we have the following equation:
- C + K
= P+
<=> = C + K - P
<=> = 4 + 75*
- 2.5
<=> = 1.5 + 73.51 = $75.01
So the the stock price is $75.01
Answer: A
Explanation:
The one that is clearly out of place would be A
Answer:
5.67 years
8.99 years
Explanation:
The relationship between future value, present value, interest rate as well as the duration of an investment(n) are depicted below with future value formula:
FV=PV*(1+r)^n
FV=future value( let us assume it is $10,000)
PV=$5,000( half of the present value)
r=13% interest rate
n=duration of the investment=the unknown
10,000=5000*(1+13%)^n
10,000/5000=1.13^n
2=1.13^n
take log of both sides
ln(2)=n ln(1.13)
n= ln(2)/ln (1.13) = 5.67 years
Triple of original investment:
FV=PV*(1+r)^n
FV=future value( let us assume it is $15,000)
PV=$5,000(one-third of the present value)
r=13% interest rate
n=duration of the investment=the unknown
15,000=5000*(1+13%)^n
15,000/5000=1.13^n
3=1.13^n
take log of both sides
ln(3)=n ln(1.13)
n= ln(3)/ln (1.13) = 8.99 years
Taxed market forces are destroying the industries
Answer:
44
Explanation:
Opening units 710
Started 8200
8910
Transffered -7650
Closing 1260
Cost Table
Cost opening current total complete WIP Equivelant cost
Head cost cost cost units units prod. units per unit
Material 8,000 138,000 146,000 7,650 1,134 8,784 16.6211
C C 7,000 324,000 331,000 7,650 882 8,532 38.7951 55.4163
