Answer:
The price of a 6-month call option on C.A.L.L. stock is $13.52
Explanation:
According to the given data we have the following:
P = Price of 6-months put option=$10.50.
So = Current price=$125
X = Exrecise price=$125
r = Risk free interest rate= 5%
T = Time 6 months = 1/2
In order to calculate the price of a 6-month call option on C.A.L.L. stock at an exercise price of $125 if it is at the money, we would have to use the formula of put-call parity as follows:
C=P+So- (<u> X )</u>
( 1+r)∧T
C=$10.50+$125-(<u>$125 )</u>
(1+0.05)∧1/2
C=$135.5-121.98
C=$13.52
The price of a 6-month call option on C.A.L.L. stock is $13.52
Answer:
i think the answer is $27,350
Explanation:
i hope it help
Answer:
The earnings per share would drop by -$2.17 per share
Explanation:
Firstly the EPS =LOSS/TOTAL SHAREHOLDING
In this ,=-$1300000/600000shares
In other words the EPS for the previous year when compared to the current would see a drop in value per unit of share of $2.17
Answer: A demand curve is built on the assumption that only the demand and price of the good/service will change.
Explanation: A demand curve is a graph that shows the change in how much demand may change if price of the good/service changes well. The graph helps connect the relationship between both price and demand
Creditors are interested in the times interest earned ratio because they want to "<span>have adequate protection against a potential drop in earnings jeopardizing their interest payments".
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The times interest earned ratio is also known as interest coverage ratio, which measures the capacity of an association to pay its obligation commitments. The proportion is generally utilized by banks to discover whether an debt borrower can bear to assume any extra obligation. It might be figured as either EBIT or EBITDA divided by the aggregate interest which is payable.
