answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Leviafan [203]
2 years ago
10

Intel Corp has a share price of $31.63 and a yearly dividend of $1.50 per year. An option with a strike price of $27 has a call

price of $6.10, and a put price of $2.65. It has a 1 yr expiry period. Assuming no interest, what is the predicted share price according to the put-call parity relationship
Business
1 answer:
viktelen [127]2 years ago
3 0

Answer:

predicted share price acc to put call parity is $31.95

Explanation:

given data

share price = $31.63

yearly dividend = $1.50 per year

strike price = $27

call price = $6.10

put price = $2.65

expiry period = 1 year

solution

Put Call Parity is price relationship between put option, call option and underlying stock

so we apply here basic put call parity formula that is

Po + So = Co +( D + X × e^{-rt}   ...................1

here Po is put option and Co is call option and X is strike price and So stock price and t is time and r is risk free rate and D is dividend and it is 0 here

so Stock price will be

So + Po = Co + D + X

So + $2.65 = $6.10 + $1.5 + $27

So = $31.95

so here predicted share price acc to put call parity is $31.95

Guest
1 year ago
: [call price] + [pdv strike price] + [pdv dividends] - [put price]
Guest
1 year ago
this is the role
You might be interested in
Which of the following captures the specific actions that leaders take to influence others at work? A.Leadership styles and beha
Tom [10]

Answer:

A.Leadership styles and behaviours

Explanation:

-Leadership styles and behaviours refer to the approach and actions a leader take to direct, motivate and guide people.

-Team processes refer to how the team works to accomplish goals.

-Team characteristics refer to the qualities that a group of people that work together possess.

-Leader power and influence refer to the ability a leader has to convince people to do certain things and achieve a goal.

According to this, the option that captures the specific actions that leaders take to influence others at work is leadership styles and behaviours.

7 0
2 years ago
The winds of the recent hurricanes in Florida are bringing significant financial gain to California orange growers. Due to the e
Vedmedyk [2.9K]

Answer:

The correct answer is option d.

Explanation:

Unfavorable weather in Florida has adversely affected the production of Florida oranges. The decline in production has led to reduced supply of Florida oranges. This decrease in supply will lead to an increase in the price.  

As Florida oranges and California oranges are substitutes, with the increase in the price of Florida oranges will lead to an increase in the demand for California oranges as people will prefer the cheaper substitute.

6 0
2 years ago
Harrison Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $
Anestetic [448]

Answer:

Option (D) is correct.

Explanation:

Given that,

Began July with a finished-goods inventory = $48,000

Finished-goods inventory at the end of July = $56,000

Cost of goods sold during the month = $125,000

Cost of goods manufactured during July:

= Ending finished goods inventory + Cost of goods sold - Beginning finished goods inventory

= $56,000 + $125,000 - $48,000

= $133,000

8 0
2 years ago
Bridgette went to the gap ready to buy a new shirt, but was not sure which color or style she wanted. the sales representative,
dmitriy555 [2]

The answer in the space provided is sales presentation. In this stage of selling process, it is where a sales representative tries to determine which the buyers wants and he or she would likely present products that would make the buyers think or to have a thought of buying the product that has been offered down to him or her.

6 0
2 years ago
Simon lost $4,300 gambling this year on a trip to Las Vegas. In addition, he paid $2,650 to his broker for managing his $265,000
Ostrovityanka [42]

Answer:

Assuming Simon’s AGI is $40,000.

Gambling losses are only deductible to the extent of gambling winnings. Thus,Simon cannot deduct any of the $4,300 gambling losses. The $3,160 transportation expenses are also nondeductible as they are deemed to be personal expenses. The $2,650 broker management fees are deductible as investment fees (miscellaneous itemized deductions subject to the 2% AGI floor), and the $1,030 tax return fees are also deductible as miscellaneous itemized deductions subject to the 2% AGI floor.

Thus, $2,650 + $1,030 – (2% x $40,000 AGI) = $2,880 deduction

6 0
2 years ago
Read 2 more answers
Other questions:
  • Keeping your _____ and _____ in mind will dictate what you say and how you say it.
    10·2 answers
  • Handling inventory materials and parts, and supervising the shipping process belongs to the ______ career pathway.
    9·2 answers
  • Accounting software can help with which TWO of these tasks?
    8·2 answers
  • Tom is expanding his business of manufacturing television sets to several neighboring countries. Which controllable risk might T
    6·2 answers
  • The following transactions are July 2014 activities of Craig�s Bowling, Inc., which operates several bowling centers (for games
    9·1 answer
  • Ring Company designs and builds jewelry. During June it had applied overhead of $120,000. Overhead is applied at the rate of 75%
    6·1 answer
  • Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. Gain on sale of equipment $ 6
    10·1 answer
  • The mean cost of domestic airfares in the United States rose to an all-time high of $385 per ticket (Bureau of Transportation St
    12·1 answer
  • The following transactions apply to Ozark Sales for 2016:
    13·1 answer
  • Juice Drinks has beginning inventory of $10,000, purchases in the amount of $150,000, and ending inventory of $8,000. Juice Drin
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!