Answer:
Short 1.5 shares
Explanation:
Given data :
Risk free rate = 3%
current price ( market price ) = $25
Delta of 1-year at money European call on MCD = 0.5
<u>Determine how many shares of MCD John should either Long or short to achieve a delta-neutral </u>
use the relation below
4 * 0.5 + 1 ( 0.5 - 1 ) + x = 0
x ( number of shares ) = - [ 4 * 0.5 + 1 ( 0.5 - 1 ) ]
= - 1.5 shares
negative ( - ) means MCD should short 1.5 shares
C. Revising is always required or at least advised
C. The adjusting entry for accrued interest on a note receivable would include a credit to interest revenue
Answer:
B. price ceiling.
A government policy that sets the highest price that can be charged for a good or service is a price ceiling.
