Note down price of FaceBook Inc. dated 1st November, and then note down price of FaceBook dated 28th Feb. Calculate holding period return for FaceBook for given time period. Now research internet to get risk-free rate of return, market return and beta for FaceBook. Appropriately refer all information and give reasons for selecting this data. Then calculate value of value of FaceBook using CAPM Model.
In: Finance
A dealer quotes a bid price of $130 and an ask price of $131 for every share of Apple stock. If you sell an Apple share to this dealer, at what price will you sell?
$140.2 $131 $140.1 $130
In: Finance
Consider the following information on the stock market.
|
Company |
Shares Outstanding |
Price, beginning of year |
Price, end of year |
|
A |
200 |
$58 |
$94 |
|
B |
500 |
$20 |
$25 |
|
C |
1000 |
$70 |
$6 |
In: Finance
|
Consider two put options differing only by exercise price. The one with the higher exercise price has |
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In: Finance
If the market price of a stock reflects all relevant information, what does its market price reflect?
| a. |
the stock’s par value |
|
| b. |
the stock’s exogenous value |
|
| c. |
the stock’s intrinsic value |
|
| d. |
the stock’s extrinsic value |
In: Finance
Let X = strike price and S = share price. A put option is deep out-of-the-money if _____________ (choose the best answer from the list below to complete the sentence). a)X/S is between 1.06 and 1.15
b)X/S is between 1.01 and 1.05
c)X/S is equal to 1.00
d)X/S is between 0.95 and 0.99
e)X/S is between 0.85 and 0.94
In: Finance
Explain the different types of price discrimination. Then identify a real-world example of price discrimination (preferably not one from the unit lesson), and explain which type of price discrimination it is. Next, using the good from your own chosen price discrimination as an example, illustrate how the good fits the criteria necessary for successful price discrimination. Finally, discuss how the price discrimination example leads to an increase in total benefit to society. Include in your discussion an evaluation of the effects on people paying the higher price and the effects on people paying the lower price.
Please do not use airlines, hotels or sporting event as an example.
In: Economics
Find the Black-Scholes price of a six-month call option written on €100,000 with a strike price of $1.0000/€. The current exchange rate is $1.125/€. The U.S. risk-free rate is 2 percent over the period and the euro-zone risk-free rate is 1 percent. The volatility of the underlying asset is 10.5 percent.
$0.1309/€
$0.1682/€
$0.1452/€
$0.0016/€
In: Finance
what break-even price is for a firm. At the break-even price, explain what the economic profits are for a firm. Would a firm continue to operate permanently at the break-even price? Define the key terms including break-even price and economic profits. Explain the implications of having zero economic profits in relation to alternative business ventures that the entrepreneur can pursue. Provide examples
In: Economics
Consider the following limit order book for a share of stock.
| Bid | Ask | |||
| Price | Shares | Price | Shares | |
| $79.75 | 500 | $79.80 | 500 | |
| 79.70 | 900 | 79.85 | 400 | |
| 79.65 | 700 | 79.90 | 900 | |
| 79.60 | 1000 | 79.95 | 700 | |
| 78.65 | 600 | |||
a. If a market sell order for 1200 shares comes
in, at what price(s) will it be filled? from low to high
b. Immediately after the order in a) is executed,
what is the bid-ask spread of the stock? (Keep two decimal
places.)
In: Finance