A price weighted stock index has stocks AAC, BZF, and CHO in it. It is at 550 on 21-Oct-2019. CHO is replaced at the end of day trading on 22-Oct-2019 with DIY. What is the value of the index on 22-Oct-2019 (take the answer to 2 decimal places)? AAC BZF CHO DIY 21-Oct-19 22-Oct-19 $75.00 $80.00 $150.00 $140.00 $10.00 $12.00 $106.00 $107.00 23-Oct-19 $82.00 $135.00 $8.00 $104.00 Shares Outstanding (in thousands) 1,000 800 50,000 8,000

A price weighted stock index has stocks AAC, BZF, and CHO in it. It is at 550 on 21-Oct-2019. CHO is replaced at the end of day trading on 22-Oct-2019 with DIY. What is the value of the index on 22-Oct-2019 (take the answer to 2 decimal places)? AAC BZF CHO DIY 21-Oct-19 22-Oct-19 $75.00 $80.00 $150.00 $140.00 $10.00 $12.00 $106.00 $107.00 23-Oct-19 $82.00 $135.00 $8.00 $104.00 Shares Outstanding (in thousands) 1,000 800 50,000 8,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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F3
Consider a particular stock with call and put options. The date is January 12, and the price of the stock is P185. The table below shows the closing prices of four options, two of which expire in February and May and have exercise prices of 175 and 205, respectively. The February options will expire on February 16th, while the May options will expire on October 20th. These specific selections are of the American style.
The following table lists prices of Amazon options in January 2018 when Amazon stock was selling for $1,200. Exercise Price Expiration Date April 2018 Call Price Put Price $ 31.10 $1,200 1,300 1,400 $1,200 1,300 1,400 $1,200 1,300 1,400 $132.70 73.20 70.10 134.20 $ 53.55 96.00 33.00 July 2018 $161.70 104.00 62.55 156.05 January 2019 $210.00 $ 88.05 155.35 133.25 112.00 190.00 Suppose that by January 2019, the price of Amazon could either rise from its January 2018 level to $1,200 × 1.25 = $1,500.00 or fall to $1,200/1.25 = $960.00. a. What would be your percentage return on a January expiration call option with an exercise price of $1,200 if the stock price rose? (Round your answer to 2 decimal places.) b. What would be your percentage return if the stock price fell? (Negative value should be indicated by a minus sign.) c. Which is riskier: the stock or the option? a. Percentage return b. Percentage return Which is riskier: the stock or the option? % (100) % Option C.
Current market price of ABC stock is $77 ABC Stock price after 30 days =$80 ABC Stock price after 45 days =$95 ABC Stock price after 60 days =$80 ABC Stock price after 75 days =$85 ABC Stock price after 90 days =$70 Current price of European call on ABC stock with exercise price of $93 with 90 days to expiration =$2 Current price of European put on ABC stock with exercise price of $82 with 60 days to expiration =$6. Risk free rate is 5%. At t=45, the minimum value of the call option is closest to A.$2.56 B.$2 C.$0
k ces an equally weighted index is one in which the index value is computed from the average rate of return of the stocks comprising the index. Equally weighted indexes are frequently used by financial researchers to measure portfolio performance. The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Douglas McDonnell Dynamics General International Rockwell Index return Shares (millions) 425 530 310 % 1/1/19 $ 72 50 79 Price 1/1/20 $ 75 43 68 a. Compute the rate of return on an equally weighted index of the three defense stocks for the year ending December 31, 2019. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) 1/1/21 $ 92 57 85 b. If the index value is set to 100 on January 1, 2019, what will the index value be on January 1, 2020? (Do…
Q7: TFS stock is eurrently trading at $17.25 per share. In 4 months it will either rise by 24.00% or fall by 20.00% with equal probability. A 4 month put option struck at $22.43 is trading at $2.59. The risk free rate is 5.50%. What is the expected profit or loss (at maturity) of the put option? A) $2.41 B) $1.32 C) $2.63 D) $1.87 E) $2.19
Instead, assume that the index is a market cap weighted index, but it is still 550 at the end of the day on 21-Oct-2019. What is the value of the index at the end of 23-Oct-2019 after CHO has been replaced with DIY (take the answer to 2 decimal places)? AAC BZF CHO DIY 21-Oct-19 22-Oct-19 $75.00 $80.00 $150.00 $140.00 $10.00 $12.00 $106.00 $107.00 23-Oct-19 $82.00 $135.00 $8.00 $104.00 Shares Outstanding (in thousands) 1,000 800 50,000 8,000
The market risk premium is 5.41% and the yield on a Treasury bond is 1.02%. What is the fair return on this stock? Etsy, Inc. (ETSY) NasdaqGS - NasdaqGS Real Time Price. Currency in USD * Add to watchlist 140.06 +5.56 (+4.13%) At close: November 20 4:00PM EST Summary Company Outlook Chart Conversations Stati: Previous Close 134.50 Market Cap 17.66B Beta (5Y Monthly) Open 136.52 1.59 Bid 139.90 x 1100 PE Ratio (TTM) 75.22 Ask 140.05 x 900 EPS (TTM) 1.86 Day's Range 136.26 - 143.96 Earnings Date Oct 28, 2020 Forward 52 Week Range 29.95 - 154.88 N/A (N/A) Dividend & Yield Volume 4,258,608 Ex-Dividend Date N/A Avg. Volume 4,284,790 1y Target Est 160.12
Date Closing Market Index value Closing Price for PIM 01/02/2017 2278.87 41.96 Calculate the monthly return for the above
Year 2018 2019 2020 2021 Beginning-of-Year Price $ 120 144 108 120 Dividend Paid at Year-End $4 4 An investor buys three shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all four remaining shares at the beginning of 2021. a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answers to 2 decimal places. Do not round other calculations.) Answer is complete but not entirely correct. Arithmetic average rate of return Geometric average rate of return 2.08% 123%
ces On March 5, 2013, the Dow Jones Industrial Average set a new high. The index closed at 20,634.53, which was up 140.50 that day. What was the return (in percent) of the stock market that day? Note: Round your answer to 2 decimal places. Return of stock market %

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