H 4 The common shares of Twitter, Incorporated (TWTR) recently traded on the NYSE for $73 per share. You have employee stock optionsto purchase 1,000 TWTR shares for $78 per share. The options expire in three years. Assume that the annualized volatility of TWTRstock is 63 percent and that the interest rate is 2.9 percent. (Assume the options are European options that may only be exercised atthe maturity date)a. Is this option a call or a put?O CallO Putb. Using an option pricing calculator such as the one at erler.com/blackscholes, estimate the value of your TWTR options.Note: Round your Intermediate calculations to 2 decimal places and final answer to nearest whole doller.Value of your TWTR optionsc. What is the estimated value of the options of their maturity is six months instead of three years?Note: Round your Intermediate calculations to 2 decimal places and final answer to nearest whole dollar.Value of the optionsd. What is the estimated value of the options if their maturity is three years, but TWTR's volatility is 38 percent?Note: Round your Intermediate calculations to 2 decimal places and final answer to nearest whole dollerValue of the options

Black Scholes-Merton model It is an option pricing model. It uses six variables to price an option.…

Answered: The common shares of Twitter,…

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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Select one:a.(iii) and (iv) onlyb.(ii) and (iii) onlyc.(i) and (ii) onlyd.All four
3. What is the NAV?
T o p i c : F i n a n c i a l A n a l y s i s G i v e t h r e e p o s s i b l e c a u s e s o f t h e f o l l o w i n g : A d v e r s e d i r e c t m a t e r i a l s p r i c e v a r i a n c e. F a v o r a b l e d i r e c t l a b o r r a t e v a r i a n c e . F a v o r a b l e d i r e c t m a t e r i a l s u s a g e v a r i a n c e. A d v e r s e d i r e c t l a b o r e f f i c i e n c y v a r i a n c e. A n d e x p l a i n ho w y o u w o u l d i d e n t i f y w h i c h v a ri a n c e s t o i n v e s t i g a t e N o t e : A n s w e r s s h o u l d b e q u i t e l o n g f o r m e t o u n d e r t a n d m o r e .
b. Discuss the effect on c and p, when there is an increase in: i. So ii. iii. O K
A, B, C
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Zina Manufacturing Company started and completed Job 501 in December with the following Job Cost Sheet and transferred it to the warehouse. Direct Materials Date Dec 17 Dec 30 Total Direct Labor Amount Date Amount $2,000 Dec 20 $4,000 8,000 Dec 30 3,800 Total Job Cost Sheet - Job No. 501 Total Cost The journal entry to record the transaction is A) WIP Inventory FG Inventory B) Cost of Goods Sold WIP Inventory C) FG Inventory WIP Inventory D) FG Inventory WIP Inventory Debit Credit 35,800 17,800 17,800 Manufacturing Overhead Date Amount Dec 24 $10,000 Dec 30 8,000 Total 35,800 35,800 17,800 17,800 35,800
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