Answer: Are you bored because i am
.
Answer:
price is $3.90
Explanation:
given data
exercise price = $30
four months to expiration price = $4.10
stock currently priced = $29.80
risk free rate = 4 % per year
to find out
What is the price of a put option with the same exercise price
solution
we know that put call parity that is express as
S + P = C + E × ........................1
here S is stock price and P is put price and R is risk free rate and C is call price and t is time to maturity and E is exercise price
so put here all these value in equation 1 we get
P = C + E × - S
P = 4.10 + 30 × - 29.80
P = 3.90
so price is $3.90
<span>A: Probably the most important indicator of financial health is the net cash flow from operating activities</span>
Answer:
(a) $4.08
(b) $51.03
Explanation:
Constant growth rate for earnings:
= (EPS for any year ÷ EPS for the previous year) - 1
= (8.40 ÷ 8.00) - 1
= 0.05
= 5%
(a) EPS for 2016 = EPS for 2015 × (1 + 5%)
= 9.72 × 1.05
= $10.21
Dividend for 2016 = 40% × EPS for 2016
= 40% × 10.206
= $4.08
(b) Stock Price at the beginning of 2016:
= Dividend for 2016 ÷ (Required rate of return - Constant growth rate)
= 4.0824 ÷ (0.13 - 0.05)
= $51.03
Answer:
d. n/a
Explanation:
Calculation for Your total return based on U.S. dollars
Total return=(2,440 pounds*$1.61)- (2,340 pounds*$1.52)/ (2,340 pounds*$1.52)
Total return=$3,928.4-$3,556.8/$3,556.8
Total return=$371.60/$3,556.8
Total return=0.1045*100
Total return=10.45%
Therefore Your total return based on U.S. dollars was 10.45%