Option O 11.61%O 5.80%O 9.28%O 13.93% Luther CorporationConsolidated Income StatementYear ended December 31 (in $millions)20062005610.1 569.6-500.2 -389.2109.9180.4Total salesCost of salesGross profitSelling, general, andadministrative expensesResearch and developmentDepreciation and amortizationOperating incomeOther incomeEarnings before interest and taxes (EBIT)Interest income (expense)Pretax incomeTaxesNet incomePrice per shareSharing outstanding (millions)Stock options outstanding (millions)-40.5-24.6-3.641.2..41.2-25.116.1-5.510.6$1610.20.3-39.6-21.6-3.3115.9Ma115.9-14.2101.7-35.59566.105$158.00.2Stockholders' Equity126.663.6Total Liabilities and Stockholders' Equity 533.1 386.7Refer to the income statement above. Luther's net profit margin for the year ending December 31,2005 is closest to

Net profit margin is the margin calculated by dividing the net income by annual sales.Net profit…

Answered: Consolidated Income Statement Year…

Consolidated Income Statement Year ended December 31 (in $millions) 2006 2005 610.1 569.6 -500.2 -389.2 109.9 180.4 Total sales Cost of sales Gross profit

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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D Question 12 8 pts Please answer the next question based on the following quotes on currency options contracts for Swiss francs (CHF), where each contract has 62,500 CHFs. Exercise prices, call and put premiums are in cents. Calls Vol. Last Puts Vol. Last 62,500 Swiss Francs-European Style. 77 Oct 77 Dec 31 10 2.78 3.60 --- 78 Nov 47 0.23 78 Dec 14 2.66 100 0.43 79 Oct 50 0.27 --- 79 Nov 79 Dec 80 Nov Dec 81 Oct 81 Nov 81 Dec Nov Nov tunu 1.59 2.04 1.00 1.39 Dec 0.20 is 3.12 --- You buy one November PUT options contract with an exercise price of $0.83. If at the time of the option expiration date price for Swiss francs is $0.835, then this call option is and you incur a net O in-the-money; loss of $2,262.50 O out-of-the-money; loss of $1,950 O out-of-the-money; loss of $312.50
QUESTION 12 Call and Put Options for Apple (AAPL) Underlying stock price: 666.80 Call Put Expiration Strike Last Volume Open Interest Last Volume Open Interest (1) (2) (3) (4) (5) (6) (7) (8) Oct 680.00 0.31 30097 15779 13.50 7869 3104 Nov 680.00 23.10 585 5436 37.40 202 4859 Jan 680.00 38.90 496 8894 51.60 60 3344 Apr 680.00 56.57 49 1265 71.30 11 393 Calculate the time value of the October Call
Bond A Bond B Bond C Face Value 1,000 1,000 1,000 Coupon Payment 75 100 115 Yield to Maturity 10% 10% 10% Maturity Period 12 12 12 Price Bond $829.66 $1,000.00 $1,102.21 Current Yield 9.04% 10.00% 10.43% Bond A is a Discount Bond, Bond B is a Par Value Bond and Bond C is a Premium Bond. The current price of Bond A is $829.66, Bond B is $1,000and Bond C is$1,102.21. The current yield of Bond A is 9.04%, Bond B is 10%and Bond C is10.43%. If the yield to maturity for each bond remains at 9%, what will be the price of each bond 2 years from now?
Yields Year TLS DI PFE WMT 20x5 12.00% 4.50% 5.80% 11.30% 20x6 13.30% 5.30% 5.70% 9.00% 20x7 10.20% 3.10% 5.90% 13.90% 20x8 9.30% 2.70% 4.50% 14.80% 20x9 8.60% 1.90% 6.30% 15.00% Correlations: CPP = Perfect positive correlation, CP = Perfect correlation, SC = No correlation, CN =Negative correlation, CPN = Perfect negative correlation TLS – DI= 0.996145099 = (CPP) DI – PFE= 0.005359947 = (SC) TLS – PFE= 0.08450695 = (CP) DI – WMT= -0.975050934 = (CPN) TLS – WMT= -0.986408221 = (CPN) PFE – WMT= -0.144303856 = (CN) b. Which three of the four stocks would you combine to build a diversified portfolio and why? It starts from the premise that there is an investment distribution in equal parts (33.3%) among the selected shares. c. Calculate the return, risk and coefficient of variation for the portfolio of three stocks selected in the previous exercise. It starts from the premise that there is an…
Underlying Microsoft (MSFT) Price: 295.71 Expiration Strike Call Put 1-Oct-2021 290 9.43 3.63 1-Oct-2021 300 3.60 7.82 1-Oct-2021 310 1.08 15.28 17-Dec-2021 290 17.25 11.72 17-Dec-2021 300 11.75 16.25 17-Dec-2021 310 7.62 22.05
M7
3 20 21 22 File Edit View Insert Format A 26 25 28 7 100% |fx| Coupon rate (paid annually 3936 ) Face valu Maturity YTM Diff -| $ + E Sheet1 - Data Data Tools Help % .0 .00 123- TEY After Tax Y 3. What price should the municiple bond trade at in order to have a YTM 70 basis points above the treasury bond of the same maturity. Assume a 35% tax rate Show your calculations Muni Bond Price Answered 35 30....html 141/151 B 10 secs left C Type here to search Treasury Bond Price Coupon rate (paid semi annually 5% ) 1000 Face value 5 Maturity Default (Ca... 1150 6% 1000 Last edit was 4 minutes ago E 2.767% F Treasury + 70bps spread BISA Ᏼ Ꮖ Ꭶ Ꭺ 4. At what tax rate will an investor be indifferent between the below bonds, assuming the municiple bond is insured against default? Show your calculations H E ♥ 1 B-=-¹ L G 60°F Mostly cloud
D & R A1 8 - 2 Question 8. Cheapest-to-Deliver Bond Today is July 1. You hold a November Treasury bond futures contract with a price of 92:15 (i.e., 92 plus [15/32]), with a delivery date of November 15 in the same year. You have identified the two bonds below that could be used for delivery against the futures contract: Bond A Bond B Maturity 26.5 years 31 years Coupon rate 5% 8.5% Asking price 93:2 144:13 Coupon dates April 15, October 15 June 15, December 15 Callable? No No Assume that the next year is not a leap year, and that the market repo rate is 5.50%. Identify the cheapest-to-deliver bond.
АВ С 8% 13% 5% Asset Return Standard Deviation12%20%0% Cov(A,B) There are two types of investors in the market. Investor X: has a Risk aversion level of 0.5 Investor Y: has a Risk aversion level of 4.5 For both investors find the respective weights of assets in (1) optimal risky portfolio and the (2) optimal complete portfolio given the following market situations: Lending is allowed at risk-free rate and rowing is allowed at 7% 72
D & R A1 8 - 1 Question 8. Cheapest-to-Deliver Bond Today is July 1. You hold a November Treasury bond futures contract with a price of 92:15 (i.e., 92 plus [15/32]), with a delivery date of November 15 in the same year. You have identified the two bonds below that could be used for delivery against the futures contract: Bond A Bond B Maturity 26.5 years 31 years Coupon rate 5% 8.5% Asking price 93:2 144:13 Coupon dates April 15, October 15 June 15, December 15 Callable? No No Assume that the next year is not a leap year, and that the market repo rate is 5.50%. Find the conversion factors for Bond A and Bond B. Use the downloadable Excel spreadsheet on the Chicago Mercantile Exchange (CME) website: http://www.cmegroup.com/trading/interest-rates/us-treasury-futures-conversion-factor-lookup-tables.html.
Bha
Question 1 Options Six months ago you bought for £18 a call option on a stock with an exercise price of £120. If the stock price at expiration of this option is £150, what is your return on investment? A. 167% B. 10% C. 67% D. 8%

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