BUG's stock price S is $50 today. It pays a dividend of $0.25 after two months and$0.30 after five months. The continuously compounded interest rate is 1.17 percent peryear. If the four-month forward price is $51.13, the arbitrage profit that you can maketoday by trading one forward contract and other securities is: [round to two decimalplaces]please show steps answer should be 1.1805

Answered: Image /qna-images/answer/fbb50809-2170-4148-b557-7ffb2cffb93f.jpg

Answered: BUG's stock price S is $50 today. It…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Find the amount in a savings account at the end of 5 years if the amount originally deposited is $4000 and the interest rate is r compounded quarterly. r O $ 400(1+0) 20 (1+0 20 $4000 1+ O`$ 4000 (1) 20 O $ 4000 (120) 20 +
James has an investment worth $175,609.50. The investment will make a special payment of X to James in 1 month from today and the investment also will make regular, fixed monthly payments of $1,440.00 to James forever. The expected return for the investment is 1.23 percent per month and the first regular, fixed monthly payment of $1,440.00 will be made to James in one month from today. What is X, the amount of the special payment that will be made to James in 1 month? An amount less than $58,600.00 or an anmount greater than $179,600.00 An amount equal to or greater than $58,600.00 but less than $88,950.00 An amount equal to or greater than $88,950.00 but less than $146,400.00 An amount equal to or greater than $146,400.00 but less than $176,000.00 O An amount equal to or greater than $176,000.00 but less than $179,600.00 Com SHEMA
(1.1) Your client wants to buy a house in 10 years. They currently have $1,400 saved up and are going to save $225 per month towards a downpayment. They will put this money in a safe account that does not earn any interest. How much will they have in the account after 5 years?
am. 218.
The following pair of investment plans are identical except for a small difference in interest rates. Compute the balance in the accounts after 10 and 30 years. Discuss the difference. Chang invests $1100 in a savings account that earns 4.1% compounded annually. Kio invests $1100 in a different savings account that earns 4.2% compounded annually. After 10 years Chang will have a balance of approximately $. After 30 years Chang will have a balance of approximately S. (Round to the nearest cent as needed.)
Mr. Del Valle is 54 years old and plans to retire in 8 years. He wants to live at least 20 years after he retires. He has $125,000 in savings and expects to earn 7% annual interest. He expects to have an income of $45,000, the same income he currently receives from his job. Del Valle will begin receiving his benefit after 8 years on a bi-weekly basis (24 payments per year) after he retires. Annual inflation is expected to reach 5%. Determine how much Mr. Del Valle must save over the next 8 years to meet the retirement goal.

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