Using the Black-Scholes options pricing model. Calculate the call option premium on a stock with an exercise price of $105, which expires in 90 days. The stock is currently trading for $100 and the monthly standard deviation on the stock return is 3%. The annual risk-free rate is 4% per year.
In: Finance
Suppose the current equilibrium point for the market of good for a closed economy is (200, $100). Also we know the ɛ = -2 and n = 1.5 at the equilibrium point. Suppose the economy is now open to trade. Let $110 Pw = $110 .
a) What is the domestic price?
b) What is the size of the export?
In: Economics
Market demand is p=100-3x. The cost function of the monopolist is given by C(x)=150+5x. To reduce DWL, the regulator is considering imposing a price ceiling to maximize efficiency. Which one will have a higher DWL (alternatively, which one will be LESS effective as lowering the DWL of monopoly)?
In: Economics
a. Analyze the following Graph and the breakeven point and discuss how this analysis is used for decision making?
b- If fixed costs are $400,000, selling price per unit is $150, and variable cost per unit is $100, how many units must the company sell in order to earn a profit of $ 100,000?
In: Accounting
A portfolio manager is considering the purchase of a bond with a 5.5% coupon rate that pays interest annually and matures in three years. If the required rate of return on the bond is 5%, the price of the bond per 100 of par value is closest to:
A) 101.36.
B) 98.65.
C) 106.43.
Please show the working process.
In: Finance
The graph shows the market for tutoring in economics at a university. A graph plots demand and supply curves with Quantity (hours of tutoring per week) along the horizontal axis and Price (per hour of tutoring) along the vertical axis. The supply curve starts at 2.50 dollars on price and has a positive slope. The demand curve starts at 25 dollars on price and has a steep negative slope. The curves intersect at 300 hours on quantity, 10 dollars on price. The other points marked on the supply curve are: 7.50 dollars for 200 hours of tutoring per week; 20 dollars for 700 hours of tutoring per week and 25 dollars for 900 hours of tutoring per week. If a quota is established at 100 hours, the deadweight loss is, in numerals, $_____.
In: Economics
The charter company has the following financing outstanding.
What is the WACC for the company?
Debt: 40,000 bonds with a 8% coupon rate and a current price quote
of 1200 the bonds have 25 years to maturity. 150,000 zero coupon
bonds with a price quote of 185 and 30 years to maturity.
Preferred Stock: 100,000 shares of 5% preferred stock with a
current price of $78, and a par value of $100.
Common Stock: 1,800,000 shares of Common Stock; the current price
is $75. And the beta of the stock is 1.2.
Market: The corporate tax rate is 40%, the market risk premium is
7%, and the risk free rate is 4%
Please Solve As soon as
Solve quickly I get you two UPVOTE directly
Thank's
Abdul-Rahim Taysir
In: Finance
In: Accounting
The charter company has the following financing outstanding.
What is the WACC for the company?
Debt: 40,000 bonds with a 8% coupon rate and a current price quote
of 1200 the bonds have 25 years to maturity. 150,000 zero coupon
bonds with a price quote of 185 and 30 years to maturity.
Preferred Stock: 100,000 shares of 5% preferred stock with a
current price of $78, and a par value of $100.
Common Stock: 1,800,000 shares of Common Stock; the current price
is $75. And the beta of the stock is 1.2.
Market: The corporate tax rate is 40%, the market risk premium is
7%, and the risk free rate is 4%
Please Solve As soon as
Solve quickly I get you two UPVOTE directly
Thank's
Abdul-Rahim Taysir
In: Accounting
The charter company has the following financing outstanding. What is the WACC for the company?
Debt: 40,000 bonds with a 8% coupon rate and a current price quote of 1200 the bonds have 25 years to maturity. 150,000 zero coupon bonds with a price quote of 185 and 30 years to maturity.
Preferred Stock: 100,000 shares of 5% preferred stock with a current price of $78, and a par value of $100.
Common Stock: 1,800,000 shares of Common Stock; the current price is $75. And the beta of the stock is 1.2.
Market: The corporate tax rate is 40%, the market risk premium is 7%, and the risk free rate is 4%
Please Solve As soon as
Solve quickly I get you two UPVOTE directly
Thank's
Abdul-Rahim Taysir
In: Accounting