Assume Call and Put options on IBM Stock have a strike of $82 have premia of $3 and $4 respectively. If at maturity the spot is $76.65, what is the payoff (per share) from the option that is in the money?
Answers
The payoff per share from the option that is in the money (the put option) is $5.35.
For the call option to be in the money at maturity, the spot price must be higher than the strike price. In this case, since the spot price is $76.65 and the strike price is $82, the call option is out of the money and has no payoff.
On the other hand, for the put option to be in the money at maturity, the spot price must be lower than the strike price. In this case, since the spot price is $76.65 and the strike price is $82, the put option is in the money.
To calculate the payoff of the in-the-money put option, we take the difference between the strike price and the spot price:
Payoff = Strike Price - Spot Price
Payoff = $82 - $76.65
Payoff = $5.35
Therefore, the payoff per share (the put option) is $5.35.
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Related Questions
The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative is:
Answers
Answer:
Differential cost
Explanation:
Differential cost is defined as variance in cost that will be incurred between two courses of action. This is used to evaluate the best option of two investments under consideration.
The option that has more revenue will have less cost. So differential cost calculation is used to determine line of action that will bring least cost.
For example if one alternative action will entail use of a warehouse of $30,000, and the alternative is to use just in time inventory practice thereby requiring $10,000 in storage cost.
The best option is the just in time option
During a storm, a tree falls on your vehicle. What type of insurance would cover the damage to your vehicle
Answers
comprehensive coverage.
what is intertropical means?
Answers
Answer:
Explanation:
situated between or within the tropics. or relating to regions within the tropics : tropical.
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help me to answer thi Q! Thanks!
Answers
Why is it important to maintain network relationships, even after you have found a job?
a. You never know when you are going to have to find a new job.
b. You can return the favor by helping network members with career advice and job leads.
You will remain informed and connected to people in your field.
d. All of the above
C.
Please select the best answer from the choices provided
ΟΑ
B
С
OD
Answers
Answer:
D (all of the above)
Explanation:
When a person has gotten a job, it is critical to keep network contacts since a person never know when he will need to locate a new career, and he will stay informed and connected to bin his sector.
What is network relationships?Relationship networking is another name for network relationships. It's all about making connections and finding ways for both sides to gain. Like the relationship, networking and partnerships intersect in numerous ways, resulting in economic potential.
Even when a person has gotten a job, it is critical to keep network contacts since you never know when you will need to locate a new career, and he will stay informed and connected to people in the sector.
With the utilization of network ties, an individual might refund the kindness by supplying career counseling and job metals to network members.
Therefore, option D is correct.
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Value of a retirement annuity Personal Finance Problem An insurance agent is trying to sell you an annuity, that will provide you with $8,200 at the end of each year for the next 35 years. If you don't purchase this annuity, you can invest your money and earn a return of 5%. What is the most you would pay for this annuity right now? Ignoring taxes, the most you would pay for this annuity is $(Round to the nearest cent.)
Answers
The most you would pay for this annuity right now is approximately $139,905.42.
To determine the most you would pay for the annuity, you need to calculate the present value of the future cash flows it will provide. The formula to calculate the present value of an annuity is:
PV = PMT × [1 - (1 + r)^(-n)] / r
Where:
PV = Present Value
PMT = Payment per period
r = Interest rate per period
n = Number of periods
In this case:
PMT = $8,200
r = 5% or 0.05 (since the return is given as a decimal)
n = 35 years
Using the formula, let's calculate the present value:
PV = $8,200 × [1 - (1 + 0.05)^(-35)] / 0.05
PV ≈ $8,200 × [1 - (1.05)^(-35)] / 0.05
PV ≈ $8,200 × [1 - 0.146430 ] / 0.05
PV ≈ $8,200 × 0.853570 / 0.05
PV ≈ $139,905.42
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The hedonic property value method can be used to estimate lost non-use value associated with oil pollution at remote ,uninhabited location (yes or no). explain your answer (3 marks).
Answers
Yes, the hedonic property value method can be used to estimate lost non-use value associated with oil pollution at remote, uninhabited locations.
The hedonic property value method is a widely used technique to measure the non-use value of environmental goods and services. This method uses property values as a proxy for the benefits derived from the environment.
In the case of remote, uninhabited locations affected by oil pollution, the hedonic property value method can be used to estimate the value that people attach to these pristine areas, even though they may not be directly using them. This value can be estimated by comparing property values of similar areas that are not affected by oil pollution. The difference in property values can be attributed to the lost non-use value associated with the oil pollution.
This method is particularly useful for remote, uninhabited locations as it is often challenging to directly measure the value that people attach to these areas. The hedonic property value method provides a reliable and objective way to estimate the non-use value of these areas, which can be used in cost-benefit analysis to inform policy decisions.
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Roslyn has decided to purchase a $14,000 car. She plans on putting $2000 down toward the purchase, and financing the rest at a 6% interest rate for 4 years. Find her monthly payment.
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And the corresponding monthly payment would be $281.82.
What is the cost each month?the loan is known as the monthly payment. When a loan is taken out, not only the principal, or the original lent amount, but also the interest that accrues, must be repaid.
The overall cost of the car in this instance is $14000, and she provides a down payment of $2000, leaving us with a balance of $12000 that needs to be financed.
In this instance, we know that and t=4 years is the total amount of time.
We can use the following calculation to determine the monthly payment:
For Since we require the rate on a monthly basis over the course of four years, our value for r is given by. If we substitute, we obtained:
And the corresponding monthly payment would be $281.82.
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Describe each integration method and when best to use it.
**The integration methods mentioned are copy and paste, linking, and embedding
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office technology allows you to EMBED or place an unlinked copy Of , the contents of a word file into an excel worksheet.
after you create an object in one program , you can chose to either the LINK object or embed it in another program.
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Which of the following is not a possible consequence of chronic large budget deficits?
The exchange rate might appreciate too much, due to an increased supply and decreased demand for the country’s currency
Aggregate demand may shift too far to the right, causing inflation
The country’s ability to repay their international debt may decrease, leading international investors to withdraw their funds
The overall level of investment can decrease, leading to a recession
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The correct answer is The country’s ability to repay their international debt may decrease, leading international investors to withdraw their funds.
A country that has a significant current account deficit always runs the danger of its currency losing value. The currency rate will decrease to reflect the imbalance of foreign capital flows if there aren't enough inflows to cover the shortfall. It is commonly accepted that large budget deficits are likely to lead to higher interest rates, an excessive expansion of the money supply, and higher prices. Therefore, it is possible that budget deficits will indirectly influence the exchange rate. The value of one currency will increase as the exchange rate changes, while the value of the other currency will decrease. A currency is considered to have appreciated when its value rises.
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answer the question under the picture
Answers
Answer:
Explanation:
The non-voters, when looked at as a group, outweigh the voters. That means that a minority of people decide the policies for the majority -- and for themselves. The non-voters don't have that luxury. They must live with what they had no part in deciding.
True or false: A balance-of-trade equilibrium exists when the income residents earn from exports exceed the money residents pay to other countries for imports.
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Answer:
false
Explanation:
I need help I don’t get this
Answers
The friest answer bc she said budget
Answer:
it's C, because when you budget you are trying to save money.
Explanation:
Manufacturers can show that a device to be marketed is substantially equivalent to a marketed product that was on the market prior to 28 may 1976, by submitting a?
Answers
Manufacturers can show that a device to be marketed is substantially equivalent to a marketed product that was on the market prior to 28 may 1976, by submitting a Premarket Notification.
Device manufacturers who are required to register are required by Section 510(k) of the Food, Drug and Cosmetic Act to give FDA at least 90 days' notice of their intention to commercialize a medical device.
Premarket Notification, often known as PMN or 510, is what this is (k). This enables FDA to decide whether the device is comparable to a device that has already been classified into one of the three categories.
Thus, "new" devices that weren't classified and weren't in commercial distribution before May 28, 1976, can be appropriately identified.
Manufacturers of medical devices must file a premarket notification, specifically, if they plan to release a new device into commercial distribution or rerelease an older product with significant changes.
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Which of the following is true about the Fifth Amendment privilege against self-incrimination?
a) You may refuse to testify about events that may give rise to any legal liability.
b) Corporations can prevent the disclosure of corporate books and records on the grounds that they are incriminating.
c) No one can be required to give evidence against himself if the evidence would give rise to criminal charges.
d) No one can be required to give evidence against himself if the evidence would give rise to civil charges.
Answers
The Fifth Amendment privilege against self-incrimination is: No one can be required to give evidence against himself if the evidence would give rise to criminal charges. Option C is the correct answer.
The Fifth Amendment of the United States Constitution protects individuals from being compelled to incriminate themselves in a criminal case. This privilege against self-incrimination applies to both individuals and corporations, but it specifically relates to criminal charges rather than civil charges.
The privilege may protect individuals within a corporation from being compelled to disclose incriminating information, but it does not shield corporate books and records from being disclosed on the grounds of self-incrimination.
In summary, the Fifth Amendment privilege against self-incrimination ensures that individuals cannot be forced to provide evidence against themselves if doing so would lead to criminal charges. Option C is the correct answer.
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Consumers in Mayville consider houses and apartments to be substitutes. There is an increase in the price of houses in Mayville at the same time three new apartment buildings open there. In the market for apartments in Mayville, we know:______. A) the equilibrium price will rise. B) the equilibrium price will fall. C) the equilibrium quantity will rise. D) the equilibrium quantity will fall
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The correct answer is A) the equilibrium price will rise, and C) the equilibrium quantity will rise.
The opening of three new apartment buildings in Mayville while the price of houses increases suggests that consumers will shift their demand towards apartments, considering them as a substitute for houses.
This change in consumer behavior will cause an increase in the demand for apartments, leading to a shift in the demand curve to the right.
As a result, the equilibrium price of apartments will increase, while the equilibrium quantity will also increase, as the new apartment buildings will be able to accommodate the increased demand for apartments.
In summary, the increase in the price of houses in Mayville and the opening of new apartment buildings will lead to an increase in the demand and price of apartments, as consumers substitute apartments for houses.The correct answer is A.
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Select the correct answer. what is currency appreciation? a. a decrease in the value of a country’s currency b. an increase in the use of a country’s currency c. a decrease in the use of a country’s currency d. an increase in the value of a country’s currency
Answers
Currency appreciation is an increase in the value of a country’s currency in relation to another currency. Option (d) is correct.
What do you mean by Appreciation?Recognizing and savoring something or someone's positive traits is known as appreciation.
An increase in the value of one currency in comparison to another is known as currency appreciation. For a variety of factors, including governmental policies, interest rates, trade balances, and business cycles, currencies appreciate against one another.
Inflation is typically lowered by currency appreciation because imports become more affordable and the reduced prices result in lower inflation. It reduces consumer interest in domestic goods and increases the appeal of imports. To stay competitive, local businesses typically need to reduce expenses and boost productivity.
Therefore, Option (d) is correct. An increase in the value of a country’s currency in relation to another currency is referred to as currency appreciation.
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what do you mean by problem solving skill ?
Answers
Answer:
Explanation:
problem-solving skill is the skill that refers to solving a problem in a situation. For instance, a problem would be a spill, and wiping it with a tissue would be the solution.
Answer:I hope this help I loving helping people good luck itchai72777
Explanation:
Problem-solving skills are the ability to identify problems, brainstorm and analyze answers, and implement the best solutions. An employee with good problem-solving skills is both a self-starter and a collaborative teammate; they are proactive in understanding the root of a problem and work with others to consider a wide range of solutions before deciding how to move forward
Problem solving is the act of defining a problem; determining the cause of the problem; identifying, prioritizing, and selecting alternatives for a solution; and implementing a solution. The problem-solving process. Problem solving resources
It is the methods we use to understand what is happening in our environment, identify things we want to change and then figure out the things that need to be done to create the desired outcome. Problem solving is the source of all new inventions, social and cultural evolution, and the basis for market based economies
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Compare tracking in affiliate marketing to that of e-mail and online advertising. What are the similarities/ differences? (Emphasis on the differences)
Answers
Similarities:
They both are ways to reach out to advertise products through the use of technology making them seen by a very wide range of buyers
Differences:
Emails are ignored and deleted by lots of people making them less effective however people may still see them unless they go to junk mail. Regular affiliate marketing, however, might reach more people as they might appeal more with photos or slogans to help get the advertisement stuck in the buyer's mind. In my opinion, affiliate marketing is more effective than emails.
Sam invests $6000 in an account that compounds interest monthly and earns 7.5 %. How long will it take for his money to double? HINT While evaluating the log expression, make sure you round to at least FIVE decimal places. Round your FINAL answer to 2 decimal places It takes_____ years for Sam's money to double
Answers
The it will take approximately 9.24 years for Sam's money to double.
How long will it take for Sam's $6000 investment to double with a 7.5% annual interest rate and monthly compounding?To determine how long it will take for Sam's money to double, we can use the compound interest formula:
A = P(1 + r/n)\(^(nt)\)A is the final amount (in this case, double the initial investment),P is the principal amount (initial investment),r is the annual interest rate (as a decimal),n is the number of times interest is compounded per year, andt is the time in years.In this case, Sam invests $6000 with an annual interest rate of 7.5% (or 0.075 as a decimal), and the interest is compounded monthly (n = 12).
We need to solve for t, the time it takes for the money to double (A = 2P):
2P = P(1 + r/n)^(nt)2 = (1 + 0.075/12)\(^(12t)\)Taking the natural logarithm (ln) of both sides to solve for t:
ln(2) = 12t ˣ ln(1 + 0.075/12)t = ln(2) / (12 ˣ ln(1 + 0.075/12))Calculating the value of t using a calculator:
t ≈ 9.24 yearsLearn more about Sam's money
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why indigenous technologies are better than modern technology
Answers
Answer:
Indigenous technologies are better than modern technology because of the following reasons ;
1) It creates new employment opportunities .
2) It is much cheaper than imported technology.
3) It helps in the technological progress of developing countries which brings economic growth in nation .
4) It leads to greater encouragement for focused research.
5) It is affordable , sustainable band environment friendly.
first person get brianlyeist
Answers
Answer:
yay
Explanation:
can someone recommend me some research topics for economics.would really appreciate if it is in a list
Answers
Explanation:
here are some research topics for economics::
1. The effect of income changes on consumer choices
2. The effect of labor force participation on the economy and budget – A comparison
3. The impact of marital status on the labor force composition: A case of [your country] economy
4. The difference in the consumption attitude in [your country] over the last decade – Critical analysis of consumer behavior trends
5. The relationship between salary levels and ‘economic convergence’ in [your country]?
6. Analyzing salary inequalities in [your country] and the forces behind such inequalities.
7. The evolution of consumption in [your country] over the last 10 years: Trends and consumer behavior.
8. Dynamics of the Gini index as a reflection of the problem of inequality in income
9. Cashless economy: The impact of demonetization on small and medium businesses
10 Privatization of Public Enterprises and its implications on economic policy and development
what are the advantages and disadvantages of common stocks
Answers
Advantages:
You can invest in companies with limited liability. Common stocks offer a higher earning potential. You can easily purchase common stock on virtually any trading platform. Common stocks can provide dividends. You’ll get to take advantage of a growing economy.Disadvantages:
You are the last person to get paid during a company liquidation. You don’t have much control over your investment. Companies are not required to pay dividends on common stocks. It can take time to generate significant gains. You will face high levels of professional competition when investing in common stocks.Hopes this helps :)
Traditions and beliefs form an intrinsic part of any __________. For example, Hanukkah, a Jewish festival celebrated by Jewish families, is unique and restricted to its community, but not celebrated by other communities. Such traditions are the foundations of families, which in turn builds the _________.
first space options: economy, government, culture
second space options: government, society, businesses
Answers
Answer:
1st blank: society
2nd blank: culture
Explanation:
The population of a city increases by 0. 5% per year. If this year's population is 201,000, what will next year's population be, to the nearest individual?.
Answers
If The population of a city increases by 0. 5% per year, The Population of the city next year will be 211,050. It can be calculated by multiplied a population with percent increasing.
Population growth generally can be defined as the increase in the number of people in a population or dispersed group. Every year, the human population will increase about 1.1% per year, Actual global human population growth amounts to around 83 million annually. In 2020, we can conclude that The global population has grown from 1 billion in 1800 to 7.9 billion.
The calculation is shown below:
The population of the city next year will be calculated as,
The Population of the city next year = population x (1+percent increasing)
The Population of the city next year = 201,00 x (1 +5%)
The Population of the city next year = 201,00 x (1 +0,05)
The Population of the city next year = 201,00 x (1,05)
The Population of the city next year = 211,050
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(ANSWER PROVIDED) Under what circumstances would it be appropriate and legal to turn down a qualified job candidate based on a disability?
done
A.
When required accommodations would be very expensive or difficult to provide
close
B.
It is never appropriate or legal to turn a job applicant down because of a disability.
C.
When a disability makes it difficult to use a standard telephone
D.
When the disabled individual is either blind or deaf
*
*
ANSWER: A. When required accommodations would be very expensive or difficult to provide
Answers
Under the circumstances that would be appropriate and legal to turn down a qualified job candidate based on a disability is:A. When required accommodations would be very expensive or difficult to provide.
What is disability?Disability occur when a part or some part of a person body is not functioning or not functioning properly. Example of disability is when a person cannot see, cannot hear, cannot walk which inturn tend to make it difficult for the person to engage in some certain activities that non disability people can do.
A qualified job candidate who is disabled may be legally turn down when the employer does not have required capacity to accommodate the person or when the accommodations would be very expensive or difficult to provide.
Therefore the correct option is A.
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Answer: A
Explanation: I j took test
The free cash flows (in millions) shown below are forecast by Simmons Inc. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions?
Year: 1 2 3 Free cash flow: −$20 $42 $45
$680
$648
$617
$586
$714
Answers
Answer:
If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, ...
Explanation:
What kind of services do banks offer their customers?
Answers
The services most often provided include a variety of checking accounts, saving accounts, certificates of deposit, and loans, including car loans and home mortgages. Additional services may include safe deposit boxes and investment-related services.
Explanation:
suppose an american-based firm is due to be paid in euros in two months. to hedge against exchange rate risk, the american firm should: sell euro future buy euro futures buy forward contract in euros do none of the above
Answers
To hedge against exchange rate risk, the American-based firm should: buy forward contract in euros.
Explanation: A forward contract is a financial instrument that allows parties to lock in a specific exchange rate for a future date. By buying a forward contract in euros, the American firm can secure the exchange rate at which they will receive euros in two months. This helps mitigate the risk of exchange rate fluctuations and provides certainty regarding the amount of dollars they will receive when converting the euros.
Selling or buying euro futures are also potential hedging strategies, but they involve trading on a futures exchange and may not be suitable for all businesses. These strategies involve speculating on the future exchange rate and can be more complex and involve higher transaction costs compared to forward contracts.
Doing none of the above would mean that the firm is not taking any proactive measures to hedge against exchange rate risk, which could leave them exposed to potential losses or uncertainties in the future exchange rate.
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