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kherson [118]
3 years ago
11

A put option that expires in six months with an exercise price of $45 sells for $2.34. The stock is currently priced at $48, and

the risk-free rate is 3.5 percent per year, compounded continuously. What is the price of a call option with the same exercise price
Business
1 answer:
Degger [83]3 years ago
6 0

Answer: $6.12

Explanation:

The price of a call option with the same exercise price will be calculated thus:

According to Put-Call Parity, it should be noted that the Call Price will be:

= Put Price + Stock Price - [Exercise Price × e ^-(r × t)]

= $2.34 + $48 - [$45 × e ^ -[0.035 * (6/12)]]

= $50.34 - [$45 × 0.9827]

= $50.34 - $44.22

= $6.12

Therefore, the price is $6.12

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An apparel manufacturing plant has estimated the variable cost to be $3.30 per unit. Fixed costs are $1,800,000 per year. Forty
erica [24]

Answer:

$15.30

Explanation:

Given that,

Fixed costs = $1,800,000 per year

Variable cost = $3.30 per unit

40% of its business is with one preferred customer.

Total units sold in a year = 150,000

Unit cost per item:

= (Fixed cost ÷ Total units sold) + Variable cost per unit

= ($1,800,000 ÷ 150,000) + $3.30

= $12 + $3.30

= $15.30

Therefore, the unit cost per item is $15.30.

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4 years ago
Shannon Reeves and Tish Phillips remember their experiences with student protests in the 1960s. Shannon remembers seeing Jimi He
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These memories about cultural heroes and events are one of the chief characteristics of an age <u>cohort</u>.

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<h3 /><h3>What characteristics do cohort study have?</h3>

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5 0
1 year ago
In order to live, people's physical needs must be satisfied? true or false?
tino4ka555 [31]
I believe this answer is true.
5 0
3 years ago
In a statement of cash flows, which of the following would be classified as an investing activity?
Elanso [62]

Answer:

C. The sale of equipment.

Explanation:

Investing activities: It records those activities that include the long-term asset buying and selling. The buying is a cash outflow while the sale is a cash inflow.

The cash outflow decreases the cash balance whereas cash inflow increases the cash balance. So the buying would be shown in a negative sign while the selling is shown in the positive sign

Hence, the correct option is C.

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4 years ago
Which of the following currencies is not/are not a hard currency?* Euro O CHF RMB O CDS GBP Both b and c Both c and d​
cestrela7 [59]
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