Consider Portfolio A: long 1 American put on a stock with strike price and expiration at T; short 1 American call on the same stock with the same strike and expiration date; and long 1 share of stock (a) If you are long portfolio A and the call is exercised, show that you will have at least K dollars plus the value of the put at time T, no matter when the call is exercised
(b) If you are long portfolio A, show that you are guaranteed a payoff of at least K at time T. Conclude that
Hint: Draw timeline from 0 to T. Plot the different cash flows under different scenarios. When adding up, don't forget TVM.

Reqwest llc agrees to sell one hundred servers to social media networks, inc. the servers, which social media networks expressly requires to have certain amounts of memory, are to be shipped “f.o.b. social media networks distribution center in tampa, fl.” when the servers arrive, social media networks rejects them and informs reqwest, claiming that the servers do not conform to social media networks’ memory requirement. a few hours later, the servers are destroyed in a fire at social media networks’ distribution center. will reqwest succeed in a suit against social media networks for the cost of the goods?

Assume today is december 31, 2013. barrington industries expects that its 2014 after-tax operating income [ebit(1 – t)] will be $400 million and its 2014 depreciation expense will be $70 million. barrington's 2014 gross capital expenditures are expected to be $120 million and the change in its net operating working capital for 2014 will be $25 million. the firm's free cash flow is expected to grow at a constant rate of 4.5% annually. assume that its free cash flow occurs at the end of each year. the firm's weighted average cost of capital is 8.6%; the market value of the company's debt is $2.15 billion; and the company has 180 million shares of common stock outstanding. the firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. using the corporate valuation model, what should be the company's stock price today (december 31, 2013)? round your answer to the nearest cent. do not round intermediate calculations.

The simple interest in a loan of $200 at 10 percent interest per year is