Explanation:
All good!! What about you.. friend?
Answer:
correct option is $38.21
Explanation:
given data
stock price = $100
stock price = either $160 or $60
interest rate = 6%
exercise price = $135
solution
we get here Hedge ratio that is express as
Hedge ratio = (Pay off in case price appreciates - Pay off in case price depreciates) ÷ (Appreciated price - Depreciated price) ..................1
put here value we get
Hedge ratio = ( Max [$135 - $160, $0] - Max[$135 - $60, $0]) ÷ ($160 - $60)
Hedge ratio = 
Hedge ratio = - 0.75
so here Price of Put option is
Price of Put option = -Hedge ratio × {Appreciated price ÷ (1 + risk free rate) - Present stock price}
Price of Put option = -(-0.75) × 
Price of Put option = $38.21
so here correct option is $38.21
Answer:
$91,900
Explanation:
The computation of net sales revenue is shown below:-
Here, for reaching the net sales revenue we add the sales revenue and deduct the sales return and allowances with sales discounts
Net sales revenue = Sales Revenue - Sales Returns and Allowances - Sales Discounts
= $95,000 - $1,000 - $2,100
= $91,900
Therefore we have applied the above formula.
Answer:
5.55%
Explanation:
risk premium = market rate of return - risk free rate
8.35 - 2.8 = 5.55
Answer:
Debit Credit
Property plant and equipment (Plant) $1,965,166
Cash $1,965,166
Being the cost of construction of plant building
Explanation:
<em>According to International Accounting Standards (IAS) 16, property plants and equipment, the cost of land includes all of the cost necessary to bring and make it ready for the intended use. </em>
The total cost of the plant = 451,000 + 31,900 + 47,156 + 1,349,900 + 85210
= $1,965,166
The journal entry
Debit Credit
Property plant and equipment (Plant) $1,965,166
Cash $1,965,166
<em>Being the cost of construction of plant building</em>
