subject
Business, 21.12.2019 00:31 HOTaco2181

You would like to be holding a protective put position on the stock of xyz co. to lock in a guaranteed minimum value of $100 at year-end. xyz currently sells for s 100.over the next year, the stock price will either increase by 10% or decrease by 1096 the t-bill rate is 5% un decrease by 10%. the t-bill rate is 5%. unfortunately, no put options are traded on xyz co. a. suppose the desired put option were traded. how much would it cost to purchase? b. what would have been the cost of the protective put portfolio? c. what portfolio position in stock and t-bills will ensure you a payoff equal to the payoff that would be provided by a protective put with x: s 100? show that the payoff to this portfolio and the cost of establishing the portfolio matches that of the desired protective put.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 14:10
Needs 83,000 optical switches next year (assume same relevant range). by outsourcing them, worldsystems can use its idle facilities to manufacture another product that will contribute $ 140,000 to operating income, but none of the fixed costs will be avoidable. should worldsystems make or buy the switches? show your analysis.
Answers: 3
question
Business, 22.06.2019 05:00
The new york stock exchange is an example of what type of stock market?
Answers: 1
question
Business, 22.06.2019 09:00
You speak to a business owner that is taking in almost $2000 in revenue each month. the owner still says that they are having trouble keeping the doors open. how can that be possible? use the terms of revenue, expenses and profit/loss in your answer
Answers: 3
question
Business, 22.06.2019 09:40
Wilson center is a private not-for-profit voluntary health and welfare entity. during 2017, it received unrestricted pledges of $638,000, 65 percent of which were payable in 2017, with the remainder payable in 2018 (for use in 2018). officials estimate that 14 percent of all pledges will be uncollectible. a. how much should wilson center report as contribution revenue for 2017? b. in addition, a local social worker, earning $20 per hour working for the state government, contributed 600 hours of time to wilson center at no charge. without these donated services, the organization would have hired an additional staff person. how should wilson center record the contributed service?
Answers: 2
You know the right answer?
You would like to be holding a protective put position on the stock of xyz co. to lock in a guarante...
Questions
question
Mathematics, 10.12.2021 04:10
question
Mathematics, 10.12.2021 04:10
question
Mathematics, 10.12.2021 04:10
question
Mathematics, 10.12.2021 04:10
question
Mathematics, 10.12.2021 04:10
question
History, 10.12.2021 04:10
Questions on the website: 13722367