Business, 27.08.2020 01:01 tiffanibell71
The common stock of the C. A.L. L. Corporation has been trading in a narrow range around $90 per share for months, and you believe it is going to stay in that range for the next 3 months. The price of a 3-month put option with an exercise price of $90 is $8.69.a. If the risk-free interest rate is 5% per year, what must be the price of a 3-month call option on C. A.L. L. stock at an exercise price of $90 if it is at the money? (The stock pays no dividends.) (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)Price of a 3-month call option $ b-1. What would be a simple options strategy using a put and a call to exploit your conviction about the stock priceβs future movement?Stock price's future movement (Click to select)Buy a putSell a straddleBuy a callSell a callBuy a straddleSell a put b-2. What is the most money you can make on this position? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)Amount $ b-3. How far can the stock price move in either direction before you lose money? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)Stock price $ c. How can you create a position involving a put, a call, and riskless lending that would have the same payoff structure as the stock at expiration? What is the net cost of establishing that position now? (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)Position Immediate CF CF in 3 monthsST < X ST > X Call (long) (Click to select)(St β 90)β(St β 90) Put (short) (Click to select)β(90 β St)(90 β St) Lending position Total (Click to select)S0St (Click to select)StS0
Answers: 1
Business, 22.06.2019 07:00
What is the state tax rate for a resident of arizona whose annual taxable income is $18,000?
Answers: 1
Business, 22.06.2019 09:30
When you hire an independent contractor you don't have to pay the contractors what
Answers: 3
Business, 22.06.2019 17:00
Dan wants to start a supermarket in his hometown, and wants to get into the business only after finding out about the market and how successful his business might be. the best way for dan to gain knowledge is to:
Answers: 2
Business, 22.06.2019 20:10
While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.
Answers: 2
The common stock of the C. A.L. L. Corporation has been trading in a narrow range around $90 per sha...
History, 30.06.2019 06:30
History, 30.06.2019 06:30
Mathematics, 30.06.2019 06:30
History, 30.06.2019 06:30
Mathematics, 30.06.2019 06:30
History, 30.06.2019 06:30
Mathematics, 30.06.2019 06:30
History, 30.06.2019 06:30
English, 30.06.2019 06:30
English, 30.06.2019 06:30