What is the value of a put option if the underlying stock price is $50, the strike price is $43, the underlying stock volatility is 55 percent, and the risk-free rate is 5.8 percent? Assume the option has 156 days to expiration. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Q: Define risk-adjusted cost of capital (r)

A: Risk adjusted cost of capital is the measure of returns of a project relative to the risks of a…

Q: etween: i. A Primary Market and Secondar

A: Primary Market The process through which a market becomes a source of securities is referred to as a…

Q: Relationship of monetary policy to inflation

A: Inflation: Inflation is defined as a situation in which the general price level of the economy rises…

Q: PFRS 9, Financial Instruments deals with the measurement and classification of which of the…

A: Financial Instruments deal with the measurement and classification of financial assets, Financial…

Q: fferent ty

A: Define interest. In finance, or economics interest can be defined as the payment of a proportion…

Q: Create simple examples to illustrate the following concepts. i. Time value of money ii. Effective…

A: i) Time Value of Money: The concept of time value of money underlines that the value of money today…

Q: 33-Accounts payable is an example of a. Non-current asset b. Current asset c. Non-current liability…

A: ACCOUNTS PAYABLE REPRESENTS THE PURCHASE THAT ARE UNPAID BY THE COMPANY . THE ACCOUNTS PAYABLE…

Q: What do you mean by Assets, Liabilities, Capital, Revenues and Expenses?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Which of the options is an example of liability?

A: Liability is something a company  or person owes, usually a sum of money.  It denotes an obligation…

Q: Perpare financails based on GAAP

A: Financial statements are always prepared by the company but which are followed and prepared as per…

Q: 7 What are utilities, property taxes, and insurance all examples of? A O Contract contingencies. BO…

A: We first needs to understand all the terms given in the question to answer the question. Contract…

Q: hich of the following cannot be qualified as a commodity certificate? A) Certificate of will B)…

A: Commodity certificate:   It is a payment method used by a commodity credit corporation in lieu of…

Q: Briefly discuss clientele theory and signaling theory of dividend policy

A: Dividend policy  of a company is the policy to either retain or distribute the profit of a company.…

Q: Write down any 4 quantitative disclosure related to lessee.

A: Lessee is a person in the Lease arrangement, who holds lease property or who rents property from the…

Q: Summarize the basic procedure of Net-Present-Worth Criterion?

A: Step 1: Initially ascertain the initial investment of the initial outlay amount (CF0). The initial…

Q: None

A: BOP (Balance of Payment) - The balance of payments (BOP) is the method countries use to monitor all…

Q: What is realized real interest rates? Give example.

A: realized real interest rate  = nominal interest rate - actual inflation rate realized real interest…

Q: Match the type of bank income (revenue) with the associated source. Revenue received from wealth…

A: Interest Income: It is the main source of Income for banks and financial institution, interest…

Q: Discuss the following terms…

A: Financial market: It is the market under which bond, debentures, equities of the company are traded…

Q: Chapter 10, Question 16: What are contingent liabilities? List three examples of contingent…

A: Contingent liabilities are the liabilities which will arise on the happening or not unhappening of…

Q: 5. Related to insurance, what is a deductible and how does it

A: In insurance scheme there is always mentioned deductible amount.

Q: Define Capital Market Line (CML)

A: Introduction: Risk refers to the degree of volatility involved in the anticipated return on…

Q: 3. Explain the current liability “Accrued and other current liabilities.”

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Net income may be based on estimates.   true or False

A: Net income: Net income is the revenue of the company after deducting all the expenses and taxes. It…

Q: a) DEFINE the following terminologies: i. Present value ii. Future value iii. Period iv. Interest…

A: In the given question we need to explain following terminologies: i. Present valueii. Future…

Q: Are the following statements true or false, according to IAS1 Presentation of Financial Statements?…

A: Lets discuss IAS 1 here. As per IAS 1 deals with the presentation of the financial statement. It…

Q: What is the relation between the present value of an investment and time and interest rate?

A: The concept of present value of an investment and time and interest rate is an important concept of…

Q: What is income bond?

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: 20. Which of the following equation is TRUE? A. Asset + Capital = Liability Asset + Expense –…

A: Accounts are generally classified into 5 categories: Assets account Liabilities account Capital…

Q: A deposit received is reported as a * A.liability B.current asset C.investment D.revenue

A: Deposit received means amount of money received from vendors or suppliers as deposit.

Q: how would you define monetary policy and its objective?

A: Monetary policy is the macroeconomic policy set by the central bank of a country. The prime focus of…

Q: Define discount interest

A: Introduction: Usually, interest is the sum charged over an amount of time by the borrower for the…

Q: c. What is the cost of equity for BAC? What is it for YXZ?

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: To have a times interest earned of 8. Determine whether  A. Financial B. Nonfinancial

A: Interest is earned.

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.