Given the following information on the available options, you need to hedge the underlying commodity as a producer with a zero-cost collar. A zero-cost collar means buying a put option and writing a call option that has the closest premium to the put. The underlying price is $630. You choose a one-year put option with $620 strike. Jan-21-64 Expire Strike Call Put
PV
630 Jan-21-65 500 158.4511 25.58539
630 Jan-21-65 530 138.3005 35.22183
630 Jan-21-65 560 120.0379 46.75599
630 Jan-21-65 590 103.6494 60.17585
630 Jan-21-65 620 89.07566 75.42293
630 Jan-21-65 650 76.22209 92.40239
630 Jan-21-65 680 64.969791 10.9945
630 Jan-21-65 710 55.185341 31.0646
630 Jan-21-65 740 46.72803 152.4702
630 Jan-21-65 770 39.45681 175.0686
What is the strike of the call option that you need to write to create a nearly zero-cost collar?
a. 650
b. 680
c. 710
d. 740

Acompany that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. prior to buying the new equipment, the company used 6 workers, who produced an average of 79 carts per hour. workers receive $16 per hour, and machine coast was $49 per hour. with the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by four carts per hour. a) compute the multifactor productivity (mfp) (labor plus equipment) under the prior to buying the new equipment. the mfp (carts/$) = (round to 4 decimal places). b) compute the productivity changes between the prior to and after buying the new equipment. the productivity growth = % (round to 2 decimal places)

Kumar consulting operates several stock investment portfolios that are used by firms for investment of pension plan assets. last year, one portfolio had a realized return of 12.6 percent and a beta coefficient of 1.15. the average t-bond rate was 7 percent and the realized rate of return on the s& p 500 was 12 percent. what was the portfolio's alpha?

Calculate the required rate of return for climax inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30, and (5) its realized rate of return has averaged 15.0% over the last 5 years. do not round your intermediate calculations.