Investor B sold a put option and bought a call option when the stock price is $30. The strikeprice for both options is $35. Premiums on call and put is $3.55 and $4.05 respectively. Atthe time of maturity, the stock is trading at $48. How much B earned as profit?a) $5.40b) $17.50c) $18.50d) $13.50

With the use of mortgage calculator, the calculation of equal yearly payments is as under: Loan…

An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the United States before the loan was fully repaid. At the end of 3 years, at the time of the third payment, the bank agreed to reduce the interest rate from 8% to 7% on the remaining debt. What was the amount of the equal annual end-of-year payments for each of the first 3 years? What was the amount of the equal annual end-of-year payments for each of the last 3 years?

An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the United States before the loan was fully repaid. At the end of 3 years, at the time of the third payment, the bank agreed to reduce the interest rate from 8% to 7% on the remaining debt. What was the amount of the equal annual end-of-year payments for each of the first 3 years? What was the amount of the equal annual end-of-year payments for each of the last 3 years?

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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To travel to America via the ship Titanic, Juana made a P100,000 loan which is to be paid over a term of 2 years at 7.2% interest convertible quarterly. The lender wants only payments of interest until the end of the term when the loan balance P100,000 must be repaid in full. The borrower will make level quarter-end payments to a sinking fund earning 6% payable quarterly. 1.) Calculate the sinking fund Balance immediately after the 6th payment is made.
You borrowed Rs.500, 000 at 18% for five years.If you decided to settle this loan after two years, what additional amount you will pay at the end of two years to fully payback this loan while bank is not imposing any fine on you?
Leader Inc. has the following foreign financing: The company borrowed US$350,000, for five years, when US$1.00 = Cdn$1.02. The exchange rate at the end of the first year is US$1.00 = Cdn$1.03, and at the end of the second year is US$1.00 = Cdn$0.99. Assume the debt was raised at par. Ignore interest. Required: How much exchange gain or loss would be shown in earnings in the second year? (Do not round intermediate calculations.) Exchange Earnings in second year Gain Loss
Please help with the last one in RED X
a) A bank made a 4-year 12% amortizing $2,500,000 loan with equal payments. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? b) Assume instead the bank demands that the borrower pay interest only for the first two years and then principal payments of $1,250,000 in years 3 and 4. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? Assume the same 12% rate of interest. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
A person borrowed an amount of one million dinars from a bank with compound interest, the annual rate of which is 10%, and it was agreed between the debtor and the creditor to pay the loan and the interest together in 3 equal installments, so that the installment would be paid at the end of each year. What is required is: a. Find the amount of the equal installment. B . Illustrate the appropriate depreciation schedule.
PT Kirana is a company engaged in the export and import sector. January 1, 2020 PT Kirana borrowed a total of IDR 150,000,000 from Bank Pelangi for 3 years with a fixed interest rate on the loan of 9% with changes in effective interest rates, while for 2021 and 2022, the effective interest rate uses the formula “Bank Indonesia interest rates. + 2% ”as the basis for determining the loan interest rate. To avoid interest rate fluctuations, PT Kirana signs a variable-payment contract, accepts the effective interest rate (market interest) swaps with a speculator. Requested:a) Make journals to record transactions related to this swaps contract!b) In accordance with the transaction, the transaction is called a transaction? And in what kind of approach?
. AU.S. bank can earn 6% on dollar loans or 8% on pound denominated loans to British concerns. The bank currently has $500 million in dollar loans and British pound loans equivalent to $400 million. The loans are funded by dollar denominated CDs paying 4%. All loans and CDs are on single payment terms. The current spot rate for pounds is S1.8604 and the one year forward rate is $1.8405.TWhat is the bank's spread if they fully hedge their exposure to pounds?
Q2) An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the United States before the loan was fully repaid. At the end of 3 years, at the time of the third payment, the bank agreed to reduce the interest rate from 8% to 7% on the remaining debt. What was the amount of the equal annual end-of-year payments for each of the first 3 years? What was the amount of the equal annual end-of-year payments for each of the last 3 years?
A person borrowed $9,600 to landscape his yard. The 220-day note had an interest rate of 11% compounded annually. He repaid the note in 180 days with his annual bonus. Find the interest due and the total amount due. Use the United States Rule. What is the interest due? What is the total amount due?
Ali borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the country before the loan was fully repaid. At the end of 3 years, at the time of the third payment, the bank agreed to reduce the interest rate from 8% to 7% on the remaining debt. What was the amount of the equal annual end-of-year payments for each of the first 3 years? And What was the amount of the equal annual ?end-of-year payments for each of the last 3 years .A and $627.28 $648.90 .B and $637.28 $648.90 .C

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