subject
Business, 14.05.2021 01:00 vero5047

Consider a six-month European put option on a stock with a strike price of $31. The current stock price is $30 and over the next six months it is expected to rise by 10% or fall by 10% in a one-period binomial tree. The risk-free interest rate is 2% per year. The stock pays no dividend. What is the price of the put option

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 22:20
Outstanding stock consists of 8,300 shares of cumulative 7% preferred stock with a $10 par value and 4,300 shares of common stock with a $1 par value. during the first three years of operation, the corporation declared and paid the following total cash dividends. year dividend declared 2016 $ 0 2017 $ 7,300 2018 $ 45,000 the amount of dividends paid to preferred and common shareholders in 2018 is:
Answers: 2
question
Business, 22.06.2019 12:30
Acorporation a. can use different depreciation methods for tax and financial reporting purposes b. must use the straight - line depreciation method for tax purposes and double declining depreciation method financial reporting purposes c. must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes d. can use straight- line depreciation method for tax purposes and macrs depreciation method financial reporting purposes
Answers: 2
question
Business, 22.06.2019 20:00
Beranek corp has $720,000 of assets, and it uses no debt--it is financed only with common equity. the new cfo wants to employ enough debt to raise the debt/assets ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. how much must the firm borrow to achieve the target debt ratio? a. $273,600b. $288,000c. $302,400d. $317,520e. $333,396
Answers: 3
question
Business, 22.06.2019 21:50
Labor unions have used which of the following to win passage of favorable laws such as shorter work weeks and the minimum wage? a. strikes b. collective bargaining c. lobbying d. lockouts
Answers: 1
You know the right answer?
Consider a six-month European put option on a stock with a strike price of $31. The current stock pr...
Questions
question
English, 18.03.2020 00:27
question
Mathematics, 18.03.2020 00:27
question
Mathematics, 18.03.2020 00:27
Questions on the website: 13722367