Mary wagers to pay one share of stock to Matt if the price at expiration in 1 year is above $75.00. Assume S(0 ) = 60.00, ? = 0.15, r = 0.04, and dividend rate = 0.01. What is the value of Mary's bet?
A) $6.55
B) $7.55
C) $8.55
D) $9.55
B
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Goldhar&Nemoy, a law firm, leases a fax machine from QED Business Machines. The principal is $5,000 and the interest over the five-year term of the lease is $1,000, so that G & M's monthly payment are $100 for 60 months
The lease provides that if any payment is missed, the entire balance of the lease becomes due, and QED may repossess the machine. G & M makes the first 12 payments, then defaults. QED repossesses the machine and immediately re-leases it to another company on the same terms. It sues G&M for $4,800. Which of the following statements is TRUE? A) This lease contains an acceleration clause which permits QED to sue for the full balance owing after a default? B) G&M may be able to defend on the basis that the acceleration clause is a penalty. C) If the acceleration clause is struck down, QED's damages will be limited to the expenses of repossessing and re-leasing the machine. D) All of the above are true. E) None of the above are true.
Lee and Patricia Cheema own a house in California. The house was owned by Lee Cheema as his separate property before his marriage to Patricia. Improvements were made to the house after the marriage and paid for with community property funds. California
is a community property state and therefore most property acquired during a marriage is community property. Assume that Don Burgunder wishes to buy the property from Lee Cheema. Don will want to be sure that all interests in the property are conveyed to him. Ownership records will show that Lee Cheema is the sole owner. Don, however, would be right to be concerned that Patricia may have some interest in the house because of the community property improvements to it. What type of deed should Don expect from the Cheema's to protect his interests?
Assuming that this bond trades for $1,035.44, then the YTM for this bond is equal to ________
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.
If you have an extremely "bullish" outlook on the stock market, you could attempt to maximize your rate of return by ________________.
A. purchasing out-of-the-money call options B. purchasing at-the-money bull spreads C. purchasing in-the-money call options D. purchasing at-the-money call options