Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 22, Problem 16CQ

Put Call Parity You find a put and a call with the same exercise price and maturity. What do you know about the relative prices of the put and call? Prove your answer and provide an intuitive explanation.

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What is the time value of money concept? Explain one of the assumptions behind the TVM model. How does this assumption limit the application of this model?
agree or disagree with post  TVM or time value of money is the suggestion that todays currency will be more profitable in the future. This concept comes from the action of investing, which produces returns and in short monopolizes the investment. One of the biggest assumptions behind the TVM model is that the economic conditions will remain steady enough to produce a profit for the consumer. This model does not account for inflation, fluctuation of the market, and even different government actions which can impact the economy. This limits the application of the model because it is not accurate and due it being based off of a growing interest rate only which we all know is not the case. Investing can be unpredictable and ever changing so that needs to be taken into account in models such as these.  agree or disagree with post
How are HRISs changing how companies manage their compensation and benefit plans?
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