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kipiarov [429]
3 years ago
13

The stock price of Atlantis Corp. is $43 today. The risk-free rate of return is 10%, and Atlantis Corp. pays no dividends. A cal

l option on Atlantis Corp. stock with an exercise price of $40 and an expiration date 6 months from now is worth $5 today. A put option on Atlantis Corp. stock with an exercise price of $40 and an expiration date 6 months from now should be worth __________
a. $.05
b. $.14
c. $2
d. $3.95
Business
1 answer:
Elena-2011 [213]3 years ago
8 0

Answer:

correct option is  a. $.05

Explanation:

given data

stock price S = $43

rate of return r= 10%

exercise price K = $40

time = 6 month

worth = $5

solution

we will apply here formula for worth that is  

P = C - S + K × e^{-rt}

here C is given worth 5 and S is stock price and K is exercise price and t is time and r is rate

so put here all value in equation 1 we get

P = C - S + K × e^{-rt}

P = 5 - 43 + 40 × e^{-0.1*6/12}

P = 5 - 43 + 38.05

P = 0.05

so here correct option is  a. $.05

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Hello!

the full faith and credit clause explains the fact that states within the United States have to respect the public acts, records, and judicial proceedings of every other state.

for example, if someone has a driver's license in Vermont, it will be considered valid in new mexico.

or if someone were to get married in California, they would still be married if they move to Virginia.

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6 0
3 years ago
Darryl’s portfolio includes 66 shares of Essentia Inc., 95 shares of SFT Legal, and 180 shares of Grath Oil. If Essentia Inc. pa
PSYCHO15rus [73]

Answer: d. $579.44

Explanation:

Dividends from Essentia Inc.

= 66*$1.79

= $118.14

Dividends from SFT Legal

= 95*$2.62

=$248.90

Dividends from Grath Oil

=180*$1.18

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Total Dividends

=$118.14 + $248.90 + $212.4

=$579.44

Darryl's total Dividends each year amounts to $579.44

7 0
2 years ago
Robyn and Austin are co-owners of a tract of land that they plan to sell one day. A court would likely find that their co-owners
uranmaximum [27]

Answer:

d) joint property ownership

Explanation:

A partnership is created by two or more individuals who combine resources, skills, and energies to start a business. The motive for starting the business is profits.  The partnership deed guides the formation of a partnership business. Partners may also draft an agreement on how they will share profits, losses, or assets should be business be dissolved.

Partners contribute capital required to start and operate the business. The capital contributed may be in the form of cash, assets, or properties.  The contributed capital becomes part of the business assets. The assets are registered under the partnerships' name. For Robyn and Austin, the land will be in the name of their business if they have a partnership business.  But if they jointly own the land, a court may rule that they are not in a partnership business.

8 0
3 years ago
A firm in monopolistic competition that introduces a new and differentiated product will temporarily have a ________ demand for
salantis [7]

In monopolistic competition, a firm introduces a new and differentiated product and will temporarily have a <u>less elastic</u> demand for its product and is able to charge a <u>higher price than before</u>.

Monopolistic competition exists while many agencies offer competing products or services which are similar, but no longer perfect, substitutes. The limitations to entry in a monopolistic aggressive industry are low, and the choices of any individual company no longer directly have an effect on its competition.

The demand curve as confronted with the aid of a monopolistic competitor isn't always flat, but as a substitute downward-sloping, which means that the monopolistic competitor, just like the monopoly, can increase its price without dropping all of its customers or lower its price and advantage greater customers.

A monopolistic market is a market structure with the characteristics of a natural monopoly. A monopoly exists when one provider gives a particularly suitable provider to many purchasers. In a monopolistic marketplace, the monopoly (or dominant employer) exerts manipulation over the market, enabling it to set the charge and supply.

Learn more about Monopolistic competition here brainly.com/question/2891218

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5 0
2 years ago
Your grandmother put some money in an account for you on the day you were born. This account pays 8% interest per year. On your
Alex777 [14]

Answer:

C. $1,000

Explanation:

The computation amount is shown below:-

Interest rate per period = Interest rate per annum ÷ Number of compounding per annum

= $8.00 ÷ 1

= 8%

Number of periods = Number of years × Number of compounding per annum

= 21 × 1

= 21

Present value = Future value × (1 ÷ (1 + rate of interest)^number of years)

= $5033.83 × (1 ÷ (1 + 8%)^21)

= $5033.83 × (1 ÷ (1.08)^21

= $5033.83 × (1 ÷ 5.033833715 )

= $5033.83 × 0.198655748

= 0.999999262

= $1,000

Therefore for computing the present value we simply applied the above formula.

4 0
3 years ago
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