Which of the following is true when dividends are expected?
A. Put-call parity does not hold
B. The basic put-call parity formula can be adjusted by subtracting the present value of expected dividends from the stock price
C. The basic put-call parity formula can be adjusted by adding the present value of expected dividends to the stock price
D. The basic put-call parity formula can be adjusted by subtracting the dividend yield from the interest rate
B
Put call parity still holds for European options providing the present value of the dividends is subtracted from the stock price.
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Mansour Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for February was based on 3,000 meals, but the diner actually served 3,400 meals. The diner's director has provided the following cost formulas to use in budgets: Fixed element per month Variable element per mealGroceries$0 $2.20 Kitchen operations$4,100 $1.90 Administrative expenses$3,600 $0.60 Fundraising expenses$1,100 $0.00 ?Required:?Prepare the diner's flexible budget for the actual number of meals served in February. The budget will only contain the costs listed above; no revenues will be on the budget.
What will be an ideal response?
The reserve requirement is 0 percent on the first $8 million in transaction deposits, 3 percent on amounts between $8 million and $50 million, and 10 percent on amounts above $50 million. A bank with transaction deposits totaling $7 million has required reserves equal to
A. $0.00 million. B. $0.21 million. C. $0.70 million. D. $1.17 million.
Cost of goods sold is equal to
a. the total amount of merchandise purchased during the year. b. the cost of merchandise purchased plus transportation-in costs less ending inventory. c. the cost of merchandise purchased plus transportation-in costs plus beginning inventory minus purchase returns and allowances and purchase discounts minus ending inventory. d. the cost of merchandise purchased plus transportation-in costs plus beginning inventory minus purchase returns and allowances and purchase discounts.
A contingent liability is recognized when the amount can be reasonably estimated and the likelihood of loss is probable
Indicate whether the statement is true or false