Answer:
Lower Bound (Minimum Value) of Put Option = Max. of ( 0 , S * E-rt - C) (In Bold is PV of S)
where, C = Spot Price / Current Price , S = Exercise Price/ Strike Price, Rf= Risk free rate , t is tenure in pa, E is Exponential
= Max. of (0, 30 * E-rt - 35)
= max. of (0, 28.5 - 35) = Max of (0, -6.5)
Thus 0 is the Minimum Bound.
At below 0 say -0.1 (Impracticle Put Buyer will never receive OP)
At Above 0 say 0.1; Gain/ Loss = PV of 30 -35 - OP =28.85 -35 - 0.1 = -6.25 Loss i.e No Arbitrage Opportunity.
Explanation:
Thinking, Writing Your Thoughts Down,
Answer:
Debit Credit
Aug 4 Cleaning Supplies 79
Accounts payable 79
(Innovation Supplies)
Aug 19 Office Equipment 4900
Accounts Payable 4900
(Office Warehouse)
Aug 23 Cleaning Supplies 209
Accounts Payable 209
( Rubble Supplies)
Explanation:
Answer:Expected value = - 94661.45
Explanation:
The Policy pay out is $95000 ,if a client is in life threatening accident insurance company will loose $95000, if the client is not in a life threatening accident the insurance company will gain $250
Probability (Client is in a threatening accident) = 0.999063
Probability (not in a life threatening accident)= 1 - 0.999063 = 0000937
Insurance Premium = $250
Insurance Payout = $95000
expected value = 0.999063 x (- (95000 - 250)) + 0.000937 x (250)
expected value = 0.999063 x (-94750) + 0.000937 x (250)
expected value = - 94661.21925 + 0.23425 = - 94661.44675
expected value = - 94661.45
Answer:
synthesis of chemical compounds with the aid of radiant energy and especially light especially : formation of carbohydrates from carbon dioxide and a source of hydrogen (such as water) in the chlorophyll-containing cells (as of green plants) exposed to light.
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