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mrs_skeptik [129]
3 years ago
10

The common stock of Mercury Motors is selling for $28.97 a share while one-year U.S. Treasury securities are currently yielding

2.8 percent. What is the current value per share of a one-year call option on Mercury Motors stock if the exercise price is $22.50 and you assume the option will finish in the money
Business
1 answer:
Usimov [2.4K]3 years ago
5 0

Answer:

$7.08

Explanation:

In short, Value of Call option = Stock Price - Strike Price

Current Value of Strike price = 22.50 * (1+2.8%)^-1

Current Value of Strike price = 22.50 * (1.028)^-1

Current Value of Strike price = 22.50 * 0.9727626459143969

Current Value of Strike price = 21.88715953307393

Current Value of Strike price = $21.89

Current Value of Stock = $28.97

Thus, Value of Call option = $28.97 - $21.89

Value of Call option = $7.08

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Answer:

Stern must borrow 13,530dollars at least to achieve is minimum monthly cash balance.

Explanation:

beginning cash balance:             $  12, 270

cash receipts                               $  97,200

cash disbursements              <u>      $(115,000)   </u>

cash balance before financing:  $   (5,530)

minimun balance required          $    8,000

financing requirement: 8,000 - (-5,530) = 8,000 + 5,530 = 13,530

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3 years ago
1. An agency is given detailed authority to issue rules similar to the power of statutes with _____ rule making.
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2 years ago
The ________ the cost of a home, the ________ the insurance. A higher; higher B higher; lower C lower; higher D none of the abov
nydimaria [60]

Answer:

The salad bar has been the place with the multiple salad options at the counter. The disadvantage at school has been the increased cost.

What is the purpose of salad for students?

The salad has been given as the practice of the addition of the nutrition in the form of a tasty and healthy meal.

The addition of the salad bar to the school menu results in the increased cost of the meal for the students, which acts as a disadvantage to the students and the school. Thus, option C is correct.

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brainly.com/question/1042123

Explanation:

The salad bar has been the place with the multiple salad options at the counter. The disadvantage at school has been the increased cost.

What is the purpose of salad for students?

The salad has been given as the practice of the addition of the nutrition in the form of a tasty and healthy meal.

The addition of the salad bar to the school menu results in the increased cost of the meal for the students, which acts as a disadvantage to the students and the school. Thus, option C is correct.

Learn more about salad bar, here:

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2 years ago
Suppose there are two cities that have rent controlled apartments. In one city (Albany) all apartments are subject to rent contr
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Which of the following is most likely to be true?

A

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A) It will be difficult to find a rent-controlled apartment in Albany or Halftrack; rents for the Halftrack apartments not subject to controls will be higher than they would be without rent control

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3 years ago
Materials that become an important component of the finished product whose cost can be easily and conveniently traced to the fin
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Materials that become independent components of the finished product and whose cost can be easily and conveniently traced to the finished products are <u>direct materials.</u>

<u></u>

<h3>What are direct materials?</h3>

Those components pass into a manufactured product are called as Direct materials. Direct materials cost refers to the cost of direct materials which may be without problems recognized with the unit of production.

For example, the value of glass is an immediate substance cost in light bulb manufacturing.

Hence, Materials that become independent components of the finished product and whose cost can be easily and conveniently traced to the finished products are <u>direct materials.</u>

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