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 $100. over the next year, the stock price will either increase by 10% or 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 = $100? show that the payoff to this portfolio and the cost of establishing the portfolio match those of the desired protective put.

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Salt corporation's contribution margin ratio is 78% and its fixed monthly expenses are $30,000. assume that the company's sales for may are expected to be $89,000. required: estimate the company's net operating income for may, assuming that the fixed monthly expenses do not change.

Sales at a fast-food restaurant average $6,000 per day. the restaurant decided to introduce an advertising campaign to increase daily sales. to determine the effectiveness of the advertising campaign, a sample of 49 days of sales were taken. they found that the average daily sales were $6,300 per day. from past history, the restaurant knew that its population standard deviation is about $1,000. if the level of significance is 0.01, have sales increased as a result of the advertising campaign? multiple choicea)fail to reject the null hypothesis. b)reject the null hypothesis and conclude the mean is higher than $6,000 per day. c)reject the null hypothesis and conclude the mean is lower than $6,000 per day. d)reject the null hypothesis and conclude that the mean is equal to $6,000 per day. expert answer