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pshichka [43]
4 years ago
6

A put option on a stock with a current price of $47 has an exercise price of $49. The price of the corresponding call option is

$4.35. According to put-call parity, if the effective annual risk-free rate of interest is 5% and there are four months until expiration, what should be the value of the put? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
2 answers:
Sedbober [7]4 years ago
4 0

Answer:

The answer is 5.559539 or 5.56.

Explanation:

From the given question let us recall the following statements

The current price of A put option on a stock  = $47

With an exercise price of $49

Annual risk-free rate of annual  interest is = 5%

The  corresponding  price call option is = $4.3

The next step is to find the put value

Now,

The Call price + Strike/(1+risk free interest) The Time to maturity =

Spot + Put price

Thus

The,Put price = Call price - Spot + Strike/(1+risk free interest)Time to maturity

When we Substitute the values, we get,

Put price = (4.35 - 47) + 49/1.05 4/12

Therefore, The  Put Price = 5.559539 or 5.56

notsponge [240]4 years ago
4 0

Answer:

The Put Value of the stock is 5.55

Explanation:

To compute the Put Price;

Therefore,

Put price = \frac{Exercise Price}{(1+ risk free interest)^{Maturity Time}} + Call Price - Current Price

By substituting the value in the formula  

Put Price = 4.35 + [49 / (1 + 0.05)^{4/12}] - 47

Put Price = 4.35 + [49 / (1.05)^{4/12}] -47

Put Price = 4.35 + [49 / 1.02] -47

Put Price = 4.35 + 48.21 – 47

Put Price = 5.55

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frez [133]

Answer:

Factory overhead costs = 3000 + 7500 + 11800 = $22,300

Explanation:

Factory overhead costs are the costs that are not directly attributable to the production. This would include all the costs except for the direct materials and direct labor.

the total factory overhead costs would be,

Factory overhead costs = 3000 + 7500 + 11800 = $22,300

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Hope that helps.

7 0
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Jenna's team is creating a new product. A deliverable for the project consists of building a website for the product. Jenna anno
gregori [183]

Jenna used the vendor bid analysis .

Option D

<u>Explanation: </u>

Vendor Bid Analysis is the tool of evaluating the proposals received by many suppliers to determine the cost of such a project. This can be done by taking into account the risk provided for project works (through quotations, deals, proposals, etc.).

The buyer's side can take account of documents from existing agreements, meeting qualitative needs, capability and infrastructure, establishing time limits for records, financial capacity, and services when analyzing the offers of a good or service.

This is not an official offer to purchase the property, but rather a public declaration that the seller isn't satisfied with the last offer which is used to keep the deal on track.

5 0
4 years ago
90 + 150 is what <br>a 140<br>b 240<br>c 350<br>d150​
My name is Ann [436]

Answer:

B 240

Explanation:

6 0
3 years ago
Read 2 more answers
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Alina [70]

Answer:

B) dividing the change in total cost by the change in output

Explanation:

Marginal cost(MC) is the cost incurred as a result of producing additional units of goods and services. It is calculated by dividing a change in total cost by a change in output.

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Marginal cost(MC)= change in total cost(TC)/ change in output

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bearhunter [10]

Answer:

Explanation:

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2)Affirmative action assists disadvantaged people that come from areas of the country where opportunities are limited  be able to advance and they otherwise could not. In other words, it bestows everybody the same playing field.

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Arguments against Affirmative Action:

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4) Affirmative Action strengthens stereotypes and racism compared to the previous point. People who give a position almost positively because of their activity are often unsuitable and the idea that all people in this race are "stupid" is endless.

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