A1 You hold a short position in an asset with a price of $50 and write a 6-month put (exercise price = $50) for $4. Given that the effective annual interest rate is 5% (annually compounded), what is your profit if the price of underlying asset at expiration of the option is $48?

Q: Molly wants to buy a camping time share for $12 500. She can borrow the money at 9.6%/a compounded…

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Q: A sum of money is deposited at the end of every month for 10 years at 7.5% compounded monthly. After…

A: we know the formula of future value  FV=PMT(1+i)n-1i where PMT - perodic payment  i - discount rate…

Q: For some of money to double itself in 5 years, what must be the rate of interest converted…

A: Let the initial principal amount  =P after five years amount A=2P time =5 years n=6 (bimonthly)…

Q: Rose has saved $160,000. If she decides to withdraw $2500 at the beginning of each month knowing the…

A: From the given, Amount (A) = $160,000 Principle amount (P) = $2500 Rate = 5% per annum Then R =0.052…

Q: 15) How long does it take a Principal of $25,200 at a simple interest rate of 9.5% to become…

A: Given that a principal of $25,200 at a simple interest rate of 9.5%  and interest is $32,500.

Q: Suppose that Charles has $75000 to invest. He finds that Company A is offering a 2.51% APY, Company…

A:

Q: the number of hours required to run per year to break even.

A: Let number of hours per year be H. Then for equivalence, Annual worth (PW) of costs for both options…

Q: An investment will pay 5000 dollars at the beginning of 2001, and 3800 dollars at the beginning of…

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Q: 4. Amir invests $1000 at an annual compound interest rate of 2% for 10 years. How much is Amir's…

A: If the principal amount is $ P The annual compound rate of interest r%. The time duration t year if…

Q: You are offered four investments. What is the best investment? a.The first promises to earn 20%…

A: Find the effective interest rate of all the given nominal interest using the following formula.…

Q: Suppose you can afford to pay $300 a month for 5 years towards a new car with no down payment. If…

A: Suppose you can afford to pay $300 a month for 5 years towards a new car Then the Future Value of…

Q: Calculate. to the nearest cent the Future Value FV (in dollars) of an investment of $10,000 at the…

A: Given Information:   Investment (PV)= $10,000  Time period (n)=15 year Rate = 2% rate per year.

Q: how expensive of a mortgage can you afford?

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Q: You are considering taking out a loan of $8,000.00 that will be paid back over 11 years with every 2…

A: Use the following formula to calculate the amount A on principal P when the annual rate of interest…

Q: Find the economic profit for this scenario.     Principal: $1,000     Rate: 4% compounded monthly…

A: To find the economic profit, we first need to calculate the future value of the investment at the…

Q: Find the time necessary, in years and days, to achieve a future value of $1000 when the original…

A: It is given thatOriginal amount=$550Future value=$1000Rate of interest=8%To find:Time period(t)

Q: Suppose a man takes out a $350 loan from a pawn shop, and the loan must be paid off with a single…

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Q: Suppose that you have $9000 to invest into an account that pays interest at a rate of 1.95%. Find…

A: Given that the investment amount P=$9000 Interest rate r=1.95%=1.95100=0.0195Number of years t=8…