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
jek_recluse [69]
2 years ago
10

Tru-U stock is selling for $41 a share. A 6-month call on Tru-U stock with a strike price of $45 is priced at $1.60. Risk-free a

ssets are currently returning .29 percent per month. What is the price of a 6-month put on Tru-U stock with a strike price of $45?
Business
1 answer:
Mandarinka [93]2 years ago
8 0

Answer:

$4.82

Explanation:

Calculation for the price of the 6-month put on Tru-U stock

To find the price of a 6-month put on Tru-U stock with a strike price of $45 we are going to use Put-call parity formula to calculate it

Using this formula

Put-call parity: S + P = C + PV(E) P

Let plug in the formula

Put-call parity= $1.60 + ($45 / 1.0029^⁶) - $41 = Put-call parity=$1.60+($45/1.01752)-$41

Put-call parity=$1.60+(44.22517)-$41

Put-call parity=$45.82517-$41

Put-call parity=$4.82

Therefore the price of a 6-month put on Tru-U stock with a strike price of $45 will be $4.82

You might be interested in
Which of the following functions does an intelligent agent perform? Group of answer choices monitoring the Internet to screen ou
riadik2000 [5.3K]

Answer:

D. Classifying and indexing web pages for search engines.

Explanation:

An intelligent agent in artificial intelligence is an autonomous entity is set to perform specific foals using "observation" and "consequent actuators".

Intelligent agents can classify and index web pages for search engines, designed to learn and so improve its agency or labor.

4 0
2 years ago
Chester's product manager is considering lowering the price of the Cone product by $2.50 and wants to know what the impact will
lozanna [386]

Answer:

The contribution margin will decrease by 2.50

Explanation:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

IF sales decreases, then the contribution margin decreases.

That's because, there is less money to pay for the variable cost.

The company will also have to sale more units to break even, as now each units contribution is fewer.

Cone's should evaluate how much their sales are expected to increase for the lower price and be cautious

7 0
2 years ago
The action of blocking time when a physician is unavailable is referred to as setting up an appointment:
tensa zangetsu [6.8K]
I believe the answer is plan
3 0
2 years ago
When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium ________ of bubble gum will d
Nadusha1986 [10]

Answer:

The correct answer is option b.

Explanation:

The equilibrium price and quantity of a product are determined through the interaction of demand and supply curves of the product.  

An increase in the supply will cause the supply curve to shift to the right. While a decrease in the demand will cause the demand curve to move to the left.  

This will cause the price of the product to decline. The change in the quantity, on the other hand, depends on the magnitude of change in the demand and supply.

4 0
2 years ago
Read 2 more answers
Rick took his family to a major league baseball game. he gave his son $100 to buy food and drinks for the group. hot dogs cost $
Alchen [17]
Rick gave his son $100 to buy food and drinks. His son returned with $25.50 in change. Therefore the amount spent was
$100 - $25.50 = $74.50.

Let
x = number of hot dogs bought (at $3.50 per hot dog).
y = number of milk shakes bought (at $8 per milk shake).
There were 8 orders of soda at $5 per soda.

The total order is $74.50, therefore
3.50x + 8y + 8*5 = 74.50
Simplify to obtain
8y = 74.5 - 3.5x
  y = 4.3125 - 0.4375x

We must have whole numbers (integers) for x and y.
Create a table that varies x from 0 to 8, and look for y to be an integer, as shown below.

  x       y
---  -------
 0   4.3125
 1    3.8750
 2   3.4375
 3   3
 4   2.5625
 5   2.1250
 6   1.6875
 7    1.2500
 8    0.8125

Because we cannot have fractional values for either x or y, the solution is x=3, y=3

Answer:
3 hot dogs, 3 milk shakes, and 8 sodas.
5 0
2 years ago
Other questions:
  • Suppose that an economy has 9 million people working full-time. it also has 1 million people who are actively seeking work but c
    8·1 answer
  • Local co. has sales of $ 10.6 million and cost of sales of $ 5.6 million. its​ selling, general and administrative expenses are
    13·1 answer
  • Which two of the four cs of credit have to do with earning potential and available cash?
    14·1 answer
  • Using the T-accounts template, open (set up) the T-accounts with the balances from the Balance Sheet (located in the first works
    14·1 answer
  • _______ These arrays inherently divide and replicate data among multiple physical drives, and increase performance and redundanc
    12·1 answer
  • If you want to sell unique wristbands to the 250 participants in a special boating event to raise funds for research for a rare
    13·2 answers
  • Which of the following statements concerning work packages is NOT correct? ​ a. Work packages are activity elements with detaile
    8·1 answer
  • Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which of
    12·1 answer
  • A project has cash flows of −$161,900, $60,800, $62,300, and $75,000 for Years 0 to 3, respectively. The required rate of return
    8·1 answer
  • Day Interiors is considering a project with the following cash flows. What is the IRR of this project?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!