Answer:
0.31
Explanation:
current stock price $70
risk free rate = 6%
standard deviation = 40$
30 day call option $75
the simplest way to calculate delta (or stock position) is to use a scientific calculator, but if you want you can also do it manually:
delta = N(d₁) ⇒ cumulative normal distribution probability at d₁
with d₁ = [ln (S/K) + (r2 + σ
²/2)T] / σ√T
It is true that capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.
<h3>What is interest capitalization?</h3>
This is when an unpaid interest is rolled over with the principal amount, which increase the overall amount to be paid. It is the inclusion of an unpaid interest to the principal balance of the loan taken.
Hence, Capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.
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A graphical analysis of tariffs reveals that they increase domestic production of the good for which imports face tariffs.
A tariff is a form of tax levied on the import of certain goods and services. Import goods are goods that are brought into a country from another country.
Tariffs increases the price of imported goods. This discourages importation of those goods. As a result, there is less competition between foreign produced goods and domestic production. This boosts domestic production.
A similar question was answered here: brainly.com/question/9975255
Answer:
The answer is $41.21
Explanation:
Required Rate of Return = Risk Free Rate + Beta*(Market Risk Premium)= 5.2% + 0.9 * 6% = 10.6%
Cost of Equity = D1/Current Stock Price + Growth Rate
10.6% = $3/$40 +g
g = 3.1%
Stock Price After 3 Years = Current Stock Price*Growth Rate= $40 * (1.031)= $41.21
