Assume S = $31.75, div = 0, r = 0.03, and ? = 0.20, and 90 days until the expiration of a standard call option. A put on call compound option with an exercise price of $2.00 has 180 days until expiration
What is the premium of the put on call option?
A) $0.42
B) $0.48
C) $0.85
D) $1.11
A
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A benchmarking process that is non-industry specific and focuses on how companies compete is referred to as ___________________________________
Fill in the blank(s) with correct word
Carteret Inc Carteret Inc manufactures hammocks under various brand names. The company sells most of its hammocks in the second quarter of each year. Their production budget for the second quarter shows the following number of hammocks needs to be produced: April 6,000 units May 10,000 units June 15,000 units Each unit requires 30 feet of cotton rope cord which costs $.50 per foot. The company
has determined that it needs 20 percent of next month's raw material needs on hand at the end of each month. In addition, each hammock requires 45 minutes of direct labor for assembly and inspection at a cost of $.25 per minute. The company currently applies manufacturing overhead to production at the rate of $8 per direct labor hour. Refer to the Carteret Inc information above. The total cost of direct labor and manufacturing overhead for the month of May is: A) $192,500 B) $ 82,500 C) $172,500 D) $168,750
Why should we be more concerned with the marginal tax rate rather than the average tax rate?
What will be an ideal response?
Leah, the CEO of SteadyResults Corp., feels that she is underpaid, so she hires a compensation consultant to survey actual competitors of the company. According to agency theory, if SteadyResults performs poorly, her salary will most likely:
A. remain the same as the company is doing poorly. B. be withheld and paid at a later date as the company is doing poorly. C. be increased in order to retain her. D. remain the same as CEO salary is based only on performance.