Consider a one-period binomial model of 12 months. Assume the stock price is $54.00,
? = 0.25, r = 0.04 and the exercise price of a call option is $55. What is the forecasted price of the stock given a downward movement during the year?
A) $43.77
B) $ 45.28
C) $48.98
D) $51.84
A
You might also like to view...
Adding the contribution margin as a component to cost-volume-profit computations will not change the resulting amount of breakeven units in a given situation
Indicate whether the statement is true or false
According to your textbook’s interpretation of Karl Weick (1979), communication is constructed through the organizational members’ desire to _______________.
a. Preserve power b. Reduce equivocality c. Increase confusion d. Exploit others
Maya has chosen to research the export strategies of several global products. She would consider a good example of a DOMINANT export strategy to be
A. the popular Harry Potter character Voldemort, which can only be leased or rented for use by amusement park operators. B. Facebook, which generates 51 percent of its advertising revenue outside the United States. C. ZipCar, which allows taxi fleet operators to use its trademarks, services, and products for a fee. D. American Airlines' common stock, which is owned by AMR Corp., but is not available for public purchase. E. the United States, which is home to the world's three largest producers and suppliers of artificial heart valves.
Which of the following statements is generally NOT true?
A) A firm should attempt to match the nature of a project with the duration of the financing it needs. B) Short-term debt usually carries lower interest rates than long-term debt with comparable default risk. C) Issuing variable rate debt increases financial uncertainty relative to issuing fixed-rate debt. D) All of the above statements are true.