subject
Business, 07.05.2021 18:20 Manuel2019

The common stock of the C. A.L. L. Corporation has been trading in a narrow range around $85 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 $85 is $8.00. A. If the risk-free interest rate is 7% per year, what must be the price of a 3-month call option on C. A.L. L. stock at an exercise price of $85 if it is at the money? (The stock pays no dividends.)
B. What would be a simple options strategy using a put and a call to exploit your conviction about the stock price's future movement?
C. What is the most money you can make on this position?
D. How far can the stock price move in either direction before you lose money?
E. 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?

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 21.06.2019 23:00, stevend0599
What is overdraft protection (odp)? a.) a cheap and easy way to always avoid overdrawing a bank account b.) a service to automatically transfer available funds from a linked account to cover purchases, prevent returned checks and declined items when you don’t have enough money in your checking account at the time of the transaction. c.) an insurance policy sold by banks to prevent others from withdrawing your money d.) a service provided by the government that insures individuals bank deposits up to $250,000
Answers: 2
image
Business, 22.06.2019 01:20, chayaharroch03
What cylinder head operation is the technician performing in this figure?
Answers: 1
image
Business, 22.06.2019 07:30, suyi14
An important application of regression analysis in accounting is in the estimation of cost. by collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. consider the following sample of production volumes and total cost data for a manufacturing operation. production volume (units) total cost ($) 400 4000 450 5000 550 5400 600 5900 700 6400 750 7000 compute b 1 and b 0 (to 2 decimals if necessary). b 1 b 0 complete the estimated regression equation (to 2 decimals if necessary). = + x what is the variable cost per unit produced (to 1 decimal)? $ compute the coefficient of determination (to 4 decimals). note: report r 2 between 0 and 1. r 2 = what percentage of the variation in total cost can be explained by the production volume (to 2 decimals)? % the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to 2 decimals)? $
Answers: 1
image
Business, 22.06.2019 22:30, aaroneduke558
Perry is a freshman, he estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $30000 this year. he expects these costs to rise about $1500 each year while he is in college. if it will take him 5 years to earn his bs, what is the present cost of his degree at an interest rate of 6%? if he earns and extra $10000 annually for 40 years, what is the present worth of his degree.?
Answers: 3
You know the right answer?
The common stock of the C. A.L. L. Corporation has been trading in a narrow range around $85 per sha...

Questions in other subjects:

Konu
Mathematics, 24.11.2019 19:31