subject
Business, 10.12.2019 19:31 ggcampos

The price of chive corp. stock will be either $86 or $119 at the end of the year. call options are available with one year to expiration. t-bills currently yield 5 percent. a. suppose the current price of the company's stock is $97. what is the value of the call option if the exercise price is $85 per share? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) b. suppose the exercise price is $115 and the current price of the company's stock is $97. what is the value of the call option now? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 21:20
Trinity coatings company uses the indirect method to prepare its statement of cash flows. refer to the following information for 2018: the beginning balance in the cash account was $ 3 comma 000. net cash provided by operating activities: $ 42 comma 000 net cash used for investing activities: $(26 comma 500) net cash provided by financing activities: $ 1 comma 700 the statement of cash flows will show
Answers: 2
question
Business, 22.06.2019 03:20
The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out
Answers: 1
question
Business, 22.06.2019 12:50
Kendrick is leaving his current position at a company, and charlize is taking over. kendrick set up his powerpoint for easy access for himself. charlize needs to work in the program that is easy for her to use. charlize should reset advanced options
Answers: 3
question
Business, 22.06.2019 18:00
Companies under market structures are independent
Answers: 2
You know the right answer?
The price of chive corp. stock will be either $86 or $119 at the end of the year. call options are a...
Questions
question
Mathematics, 21.04.2021 06:30
question
Mathematics, 21.04.2021 06:30
question
Mathematics, 21.04.2021 06:30
question
Geography, 21.04.2021 06:30
question
Social Studies, 21.04.2021 06:30
question
Arts, 21.04.2021 06:30
question
Mathematics, 21.04.2021 06:30
Questions on the website: 13722361