The price of a stock is $50. The stock pays a dividend of $5 in 3 months. A 6-month European put option on the stock has a strike price of $48 and a premium of $4.38. The continuously compounded interest rate is 8%. Calculate the premium for a 6-month European call option on the stock with a strike price of $48. * A 1.02 * B 3.36 * C 3.46 * D 4.38 * E 5.40 2 1. An "exchange call option" gives the owner of the option the right to give up one share of Stock A in exchange
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Stock Options Paper Stock options are a great incentive to get good‚ smart‚ and ambitious workers. You look at Coke and Pepsi they offer there delivery drivers‚ and there salesmen stock options to give them that incentive to sell and delivers those goods. What exactly are stock options is a question many people may ask. Stock options are when a company gives you the right to buy a certain number of shares at an agreed upon price that the employer specifics. Private and public companies
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The Karachi Stock Exchange or KSE is a stock exchange located in Karachi‚ Sindh‚ Pakistan. Founded in 1947‚ it is Pakistan’s largest and oldest stock exchange‚ with many Pakistani as well as overseas listings. Its current premises are situated on Stock Exchange Road‚ in the heart of Karachi’s Business District. The KSE is the biggest and most liquid exchange in Pakistan and in 2002 it was declared as the "Best Performing Stock Market of the World" by "Business Week". As of December 20‚ 2007‚ 671
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The purpose of this case study is to discuss the issues related to stock options and how they should be accounted for. Introduction In the early 1990s‚ FASB proposed an accounting rule calling for corporations to recognize compensation expense for certain stock options when they were granted to executives and employees. This proposal was met with strong opposition from many different sources including: Congress who passed a resolution by vote urging FASB to drop the proposed standard‚ business
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Monique L. Palmer FIN :534 Financial management Final Exam. 13December2010 Solve the following problem showing all the necessary steps and computations. 1. Using the data in the following table‚ estimate (a) the average return and volatility for each stock‚ (b) the covariance between the stocks‚ and (c) the correlation between these two stocks. A. Stock A -10+20+5-5+9/6 = 3.5% Stock B 21+30+7-3-8+25/6 = 12% B. Covariance = 1/5 (-0.1-0.035)(0.21-0.04) + (0.2-0.035)(0.3-0.12)
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BUFFER STOCK SCHEMES The prices of agricultural products such as wheat‚ cotton‚ cocoa‚ tea and coffee tend to fluctuate more than prices of manufactured products and services. This is largely due to the volatility in the market supply of agricultural products coupled with the fact that demand and supply are price inelastic. Products with unstable conditions of supply and demand will experience price fluctuations. Agricultural (farm) prices tend to be volatile because: Supply changes because
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Stock Market Project Purchase #1 Question 1: The first stock I purchased was Microsoft as a safe investment with low risk. As the game first began to enroll itself‚ Microsoft became a very profitable contender due to the sharp increase in share prices. I knew the increase would not hold on for long and the stock trend portrayed both sharp increases and decreases in stock prices; this attributed to the selling of my Microsoft shares as an incentive to save any gains I made. Question 2: http://www
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and International environment 5 - PESTEL Analysis 6 - PORTER`s five forces 8 - Interview 12 INDIVIDUAL: - Company background 14 - PULL AND BEAR`s case 14 - Vision‚ mission and objectives 15 - Swot analysis 16 - The strategic management process 17 - The critical success factors 18 References 20 INTRODUCTION PULL AND BEAR is a textile company was set up by the Inditex Group in 1991. Since its creation‚ its fashion concept
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invested all of money in stocks. I started to invest from first of March to fifteen of April. I purchased 6 companies’ shares for increasing my capital. There are reasons why I chose these companies for buying and selling the firms’ stocks. I got the information about the firms from companies’ website‚ Korea newspapers and experts’ reports. Conclusion I invested money to 6 companies and they brought me a profit. Total profit was $ 48230.7. My capital increased by 32 %. Companies’ profit effects on increasing
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Stock Market Project August 25‚ 2008 The purpose of this paper is to explain the outcomes and decisions involved in investing one million dollars in four various stocks. Choosing a stock to invest in and how much to invest can be very difficult. There are many web sites available online to make the decision a little easier. This paper will explain why AT&T‚ Exxon‚ Apple and Wal-mart were the chosen four and the final outcome of the investment after four weeks. There are an overwhelming
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