Currently, the spot rate is $1.33/£. As a trader, you believe that the British pound will depreciate significantly in the near future. You decide to speculate by buying a Decemberput option with a strike price of $1.35/£ and a premium of$0.05/£. Please answer the following questions:
1. Explain briefly why buying a put option makes sense in this case.
2. How much is the intrinsic value of the option? And how much is the time value?
3. Please fill in the blanks of the table below.
|
Spot rate at maturity in December |
Exercise or not? |
Net profit |
Moneyness (ITM, ATM or OTM) |
|
$1.20/£ |
|
|
|
|
1.25 |
|
|
|
|
1.30 |
|
|
|
|
1.35 |
|
|
|
|
1.40 |
|
|
|
|
1.45 |
|
|
|
In: Finance
In order to solve this conflict using the Coase Theorem, does Dr. M need Sumner County to pass laws regulating or taxing the burning of trash? [Briefly summarize the Coase Theorem and its assumptions and apply its main conclusion to this situation.]
Why is the Coase Theorem more likely to be helpful in this case than in the case of air pollution caused by a large, coal fired power plant near a densely populated urban area?
In: Economics
ANSWER NUMBER 2 ONLY THANK YOU! :)
1) (a)There are 3 forms of Program Memory Addressing Modes: Direct,
Relative and Indirect. Explain/Illustrate what happens to CS and IP
registers if the JMP THERE instruction is stored at memory address
10000H (CS=1000H, IP=0000H) and the address of THERE is:
(A) 10020H
(B) 30000H
(b) Determine whether the JMP THERE instructions are SHORT, NEAR or
FAR jump. Explain your answer.
2) (a) Illustrate the PUSH BX instruction if BX =1234H and SS:SP = 1000:0002. (b) Illustrate POP CX if it is the subsequent instruction that accessed the Stack memory.
In: Computer Science
When graphing nuclear binding energy per nucleon vs the number of nucleons in the nucleus, the significance of the peak near iron-56 is
Choose one:
a. if it was possible to make a atomic bomb from iron-56 it would release more energy than even a hydrogen bomb
b. the nuclei heavier than iron release energy when undergoing fission, whereas lighter nuclei can release energy in fusion reactions.
c. Spacecraft can be shielded with iron-56 to protect the astronauts from dangerous radiation
d. isotopes with even numbers of nucleons are the most stable
In: Physics
E. coli cells are growing in a medium containing
lactose but no glucose. Indicate whether each of the following
changes or conditions would increase, decrease, or not change the
expression of the lac operon. For full credit, you must
explain your answer. It may be helpful to draw a model depicting
what is happening in each situation.
(a) Addition of a high concentration of glucose
(b) A mutation that prevents dissociation of the Lac repressor from the operator
(c) A mutation that completely inactivates ?-galactosidase
(d) A mutation that completely inactivates galactoside permease
(e) A mutation that prevents binding of CRP to its binding site near the lac promoter
In: Biology
In: Finance
In: Biology
King Leopold Prawn Farming Ltd plans to raise $3 million to build a new prawn farm near Broome in Western Australia. It will issue bonds with a term to maturity of 15 years. The face value per bond will be $1,000 and the coupon rate will be 8% per annum, paid semi-annually. Similar corporate bonds are trading at a yield to maturity of 10% per annum, compounded semi-annually. It is expected that these new bonds will trade at this rate. How many bonds will the company need to issue?
Select one:
a. 3,598
b. 3,545
c. 3,597
d. 3,544
In: Finance
Draw the structure of four benzoic acid molecules and as many water molecules as you need to illustrate how the solid state of benzoic acid might look in cold water prior to recrystallization. In a second drawing illustrate what happens if the water is heated to near 100C, where benzoic acid is soluble. In each drawing identify, by name, specific examples of types of intermolecular interactions involved. Based on your drawings explain why benzoic acid is soluble in hot water and not soluble in cold water. Answer the question at the molecular level discussing the specific interactions involved in your drawings.
In: Chemistry
-JavaScript task, just need the layout, I will fill out the citations and details and aparagraphs.
The Pros and Cons of Internet Voting.
In: Computer Science