Call option: It is an agreement where the buyer is entitled the right to buy a stock at a pre-specified price within a pre-specified period. The stock on which the call option is provided is called the underlying asset. Put option: It is an agreement where the buyer is entitled the right to sell a stock at a pre-specified price within a pre-specified period. The stock on which the put option is provided is called the underlying asset. Put-call parity: The put call parity provides a relationship among the stock price, strike price, call price and the put price. According to this theory, the difference between the price of a call option and put option on the same asset underlined with the same strike price and expiry date equals to the difference between the stock price and the present value of the strike price. Pr i c e o f c a l l − Pr i c e o f p u t = S t o c k p r i c e − P V o f S t r i k e p r i c e Pr i c e o f c a l l − Pr i c e o f p u t = S t o c k p r i c e − S t r i k e p r i c e × e − r i s k f r e e r a t e × t i m e t o exp i r e To determine: The impact of volatility on the option values and to provide a numerical example using put call parity relationship to support it.

Question

Answer this question Using the Google drive liink below it hhas the case study In the scenario, Sharp’s employer has been putting more emphasis on controlling costsfor the various businesses. With the slowing of overall spending in the construction sector,Travolta had ordered managers to closely monitor expenses. He had sold several companiesand has given vice presidents greater responsibility for statements of financial positions. Whatpositive and negative consequences might this pose to the company in future fraud prevention?Outline at least three of each type. Please use sources and insert intext citiations Apa 7 format in the answer and provide the links and references below. https://docs.google.com/document/d/1MpthrFl3eAnMKR-EprYRP9sMo8Ll0WtbhxhpGtLbdcw/edit?usp=sharing

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Question

Chapter 16, Problem 4PS

Summary Introduction

Call option:

It is an agreement where the buyer is entitled the right to buy a stock at a pre-specified price within a pre-specified period. The stock on which the call option is provided is called the underlying asset.

Put option:

It is an agreement where the buyer is entitled the right to sell a stock at a pre-specified price within a pre-specified period. The stock on which the put option is provided is called the underlying asset.

Put-call parity: The put call parity provides a relationship among the stock price, strike price, call price and the put price. According to this theory, the difference between the price of a call option and put option on the same asset underlined with the same strike price and expiry date equals to the difference between the stock price and the present value of the strike price.

Price of call−Price of put=Stock price−PV of Strike pricePrice of call−Price of put=Stock price−Strike price×e−risk free rate×time to expire

To determine:

The impact of volatility on the option values and to provide a numerical example using put call parity relationship to support it.

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Answer this question Using the Google drive liink below it hhas the case study In the scenario, Sharp’s employer has been putting more emphasis on controlling costsfor the various businesses. With the slowing of overall spending in the construction sector,Travolta had ordered managers to closely monitor expenses. He had sold several companiesand has given vice presidents greater responsibility for statements of financial positions. Whatpositive and negative consequences might this pose to the company in future fraud prevention?Outline at least three of each type. Please use sources and insert intext citiations Apa 7 format in the answer and provide the links and references below. https://docs.google.com/document/d/1MpthrFl3eAnMKR-EprYRP9sMo8Ll0WtbhxhpGtLbdcw/edit?usp=sharing

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Option should be match experts are giving incorrect answer they are using AI /Chatgpt that is generating wrong answer. i will give unhelpful if answer will not match in option. dont use AI also