The price company A’s stock is $50 and the price of its 3-month European call option on the stock with a strike price of $52 is $2. Draw the payoff graph for the option buyer.

What is the price of a European call option in a non-dividend-paying stock when stock price is $52, the strike price is $50, the risk-free interest rate is 12% per annum, the volatility is 30% per annum, and the time to maturity is three months? What is the price of the call option? (No need to show work, but you need to report values of N(d1),n(d2) and price of the call option)

Given the cross-price elasticity of .75 between Tropicana and Minute Maid orange juice, the price of Minute Maid was raised from $1.50 to $2.50, ceteris paribus, how much will % will the quantity purchase of Tropicana rise?

Explain the difference between the CPI and GDP price index (Implicit Price Deflator). Which one is a better measure of inflation, and why? Use a graph to support your answer.

Suppose that the spot price of oil is US$19,

The quoted 1-year futures price of oil is us$16

The 1-year US$ interest rate is 5% per annum

The storage cost of oil are %2 per annum

is there an arbitrage opportunity? is yes, please explain how you can observe this opportunity.

Please explain how to do this problem and solve.

Bid Ask

b. Norman Pilbarra submits a market order to buy 600 shares. What is the maximum price that he will pay? (Round your answer to 2 decimal places.)

Purchase price allocation (PPA)

When does a purchase price need to be allocated?

Please go in depth with your answer and provide examples

What is the arbitrage opportunity when 9-month forward price is out of line with spot price for asset providing dollar income (asset price =$50; forward price=$45; income of $4 occurs at 5 months; 5-month and 9-month interest rate are 4% and 6% per annum; maturity of forward contract =9 months)