Consider a stock currently priced at $25 with an expected volatility of 25% p.a. A dividend of $2.50 is expected in 1.5 months. You are working for a bank and one of your clients wants to buy a call option on the stock with a maturity of three months and a strike of $24.
a) The client has asked you to quantify what the additional cost will be if they have the right to exercise the call option early. Use a three-step binomial model and assume a constant risk-free rate of 4% p.a. continuously compounded.
b) If the client buys an option that allows for early exercise, based on the pricing model, when would you advise them to exercise this right?
In: Accounting
In early 2015, Ford Motor (F) had a book value of equity of $ 24.8 billion, 4.0 billion shares outstanding, and a market price of $ 16.00 per share. Ford also had cash of $ 21.7 billion, and total debt of $ 119.2 billion. Three years later, in early 2018, Ford had a book value of equity of $ 35.0 billion, 4.0 billion shares outstanding with a market price of $ 11.00 per share, cash of $ 26.5 billion, and total debt of $ 154.3 billion. Over this period, what was the change in Ford?s a. market capitalization? b. market-to-book ratio? c. enterprise value?
In: Finance
13. The observation of what overall characteristic of the CMBR left, "... no real doubt we are seeing the residual radiation left behind from the hot, dense beginning of the early universe."
14. The tiny fluctuations in the early universe due to gravity
redshifts from concentrations of mass eventually led to
what?
16. List two processes or events that formed the elements
heavier than helium: a) those that make carbon, nitrogen, and
oxygen, and b) those that make iron, nickel, gold, and even heavier
elements.
17. The discovery of what aspect of the Universe restores
Einstein’s “biggest blunder” (his fudge factor in his equations) to
general relativity
In: Other
Out of a world population of approximately 6.6 billion, 1.2 billion people live in the richer countries of Europe, North America, Japan and Oceania and is growing at the rate of 0.25% per year, while the other 5.4 billion people live in the lees developed countries and is growing at the rate of 1.5%. What will be the world population in 5 years if we assume that these rates of increase will stay constant for the next 5 years.
In: Math
EBay is a secondary market for goods in the same way that the NYSE is a secondary market for stocks. Explain how EBay users helps keep prices efficient for any generic good (if you need a tangible example, how about a Make America Great Again hat?). This mechanism should be analogous to how traders keep prices efficient for stocks. Be detailed in your explanation to walk through the exact mechanism.
In: Finance
Using the Internet to Obtain Information about Estate Planning, visit the Prudential Insurance Company of America (Links to an external site.)Website. Gather information on various estate planning topics such as an estate planning worksheet; whether you need an estate plan; when to update your plan; estate taxes, wills, executors, trusts, etc. Then prepare a report to help you develop your personal estate plan.
In: Finance
The Flexner report was spurred by the fact that:
- The thousands of medical schools in North America had little unity of purpose or of standards
- The majority of medical schools were using the same standards but it wasn't written down explicitly for all to see
- It was time for a fresh look since the last study of this kind was done 50 years before the Flexner report
- The Carnegie Foundation wanted to establish itself as an overseer of medical schools
In: Nursing
Can you imagine living in the young America we are reading about? If you could visit the U.S. in this era (say, you would have to stay for one hundred days, but then you could come back to the present) would you do so? Why/why not? Time travel may not be possible, but "human wormholes" certainly are, and they can reveal just how near to us "history" remains.
In: Nursing
Potato chips is a staple snack in Japan. Nowadays international potato chip brand are trying to gain control of the market in Japan. One of the strong competitor is a potato chip company from America called Pringles.
To prepare for this you can research online about the brand online or estimate how international company fare in Japan. Make a SWOT analysis table about Pringles in Japan and briefly explain it briefly!
In: Economics
In: Economics