Answer:
the exercise value of the option is $5.50
Explanation:
The computation of the exercise value of the option is given below:
= Sale value of the stock - exercise price of the option
= $23 - $17.50
= $5.50
Hence, the exercise value of the option is $5.50
Simply we deduct the exercise price of the option from the sale value of the option
And, the same should be considered
Answer:
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- <u><em>Option C. $105,608.11</em></u>
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Explanation:
Basis:
- Interest compounded monthly
- rate = 0.021/12 = 0.00175
1. Year 1:
All the figures in dollars.
- Initial balance: 0
- Initial balance + interest = 0
- Deposit at the end of the year: 23,500
- Final balance: 23,500
2. Year 2:
All the figures in dollars.
- Initial balance: 23,500
- Initial balance + interest: 23,500 (1 + 0.00175)¹² = 23,998.28
- Deposit at the end of the year: 24,500
- Final balance: 24,500 + 23,998.28 = 48,498.28
3. Year 3:
All the figures in dollars.
- Initial balance: 48,498.28
- Initial balance + interest: 48,498.28(1 + 0.00175)¹² = 49,526.60
- Deposit at the end of the year: 26,500
- Final balance: 26,500 + 49,526.60 = 76,026.60
4. Year 4:
All the figures in dollars.
- Initial balance: 76,026.60
- Initial balance + interest: 76,026.60(1 + 0.00175)¹² = 77,638.62
- Deposit at the end of the year: 28,000
- Final balance: 28,000 + 77,638.62 = 105,638.62
Assuming differences in rounding intermediate values, the answer is the option C.
Answer:
$1.55
Explanation:
Interest rate parity = (1+Rh) / (1+Rf) = F1 / S0
Rh = rate on home currency here US is home 3% p.a = 3%/4 = 0.75%
Rf= rate on foreign currency here Germany 3.5% p.a = 3.5%/4 = 0.875
F1 = Forward rate
, S0= Spot market rate
So, (1+0.0075) / (1+0.00875) = F1 / 1.56
1.0075/1.00875 = F1 / 1.56
0.998761 = F1 / 1.56
F1 = 0.998761 * 1.56
F1 = 1.55806716
F1 = $1.55
Thus, the 90-day forward rate is $1.55
Answer:
Bread sticks: 6 × $2.50 = $15
Pizza: $12.99
$15 + $12.99 = $27.99
Tax: 7% = 0.07
$27.99 × 0.07 = $1.96 (approximate)
$27.99 - $1.96 = $26.03
hope this helped you!
