Data. So-102:X= 116, 1 + r= 1.08. The two possibilities for ST are 150 and 82. a. The range of S is 68 while that of P is 34 across the two states. What is the hedge ratio of the put?b. Form a portfolio of one shares of stock and two puts. What is the (nonrandom) payoff to this portfolio?

Answers

Answer 1

P1Answer:

a.

-41.47%

b.

8%

Explanation:

a.

Hedge ratio can be calculate as follow

Hedge ratio = Put option payoff - Stock option Payoff

Hedge ratio = ( P1 - P0 ) / ( S1 - S0 )

Where

P1 = 0

P0 = 34

S1 = 150

S0 = 68

Placing vlaues in the formula

Hedge ratio = ( 0 - 34 ) / ( 150 - 68 )

Hedge ratio = -34 / 82

Hedge ratio = -0.4147 = -41.47%

b.

First calculate the Payoff

Possibility 1

Payoff = 150 + 0 = 150

Possibility 2

Payoff = 82 + 68 = 150

So payoff will be same in both possibilities

So

1 + r = 1.08

r = 1.08 - 1

r = 0.08

r = 8%

Payoff of portfolio of one shares of stock and two puts is 8%.


Related Questions

A company currently has a 51 day cash cycle.Assume the firm changes its operations such that it decreases its receivables period by 2 days,increases its inventory period by 3 days,and increases its payables period by 4 days.What will the length of the cash cycle be after these changes?
A) 42 days
B) 45 days
C) 48 days
D) 49 days
E) 51 days

Answers

Answer:

E) 51 days

Explanation:

Calculation of length of the cash cycle after the changes.

As given:

Current cash cycle = 51 days.

Decreases its receivables period by 3 days

Increases its inventory period by 4 days.

Increases its payables period by 1 day.

Hence,

Cash cycle = 51 days - 3 days + 4 days- 1 day

Cash cycle = 51 day

Therefore the cash cycle after the changes will be 51 days

hello can someone help me with this because i'm confused about it

Use online resources to research questionnaires that businesses generally use to conduct primary research in the form of a survey or personal interviews. Assume that a business (of your choice) plans to launch a certain product in the market soon. Prepare a short questionnaire for a sample (respondents) that helps the business collect useful market research data. The questionnaire should have at least ten questions with yes/no responses, or scales (1 to 5, low/high, agree/disagree, and so on). Ensure that you pay attention to the utility, sequence, and phrasing of the questions.

Answers

Answer:

You can say something along the lines... "I chose the beverage and foods industry for the purpose of this task. I assume that my beverage-manufacturing business plans to launch a new soft drink to cater to young adults in the market. I plan to assemble a group of 100 individuals in the age group of 16 to 20 for the purpose of my research survey...."

To further explain, add questions you would ask for an interview and make sure it relates to the industry you chose. The example above, a beverage and food industry, the questions I would add would be:

How often do you buy soft drinks?—every day/twice a week/once a week/once a month.

What type of soft drink do you prefer?—fruit flavored/carbonated/both.

Which is your favorite brand of soft drinks? (open ended).

Hope this helps!

The alimony rules applicable to divorces entered into before 2019:_____.A. Are based on the principle that the person who earns the income should pay the tax. B. Permit tax deductions for property divisions. C. Look to state law to determine the definition of alimony. D. Distinguish child support payments from alimony. E. None of these.

Answers

Answer: D. Distinguish child support payments from alimony.

Explanation:

Alimony is simply referred to as the payments that is paid to a spouse after a divorce in order to support such spouse. It should be noted that this payment can either be on a continuing basis or can be a lump sum.

Alimony is the payment made to the dependent spouse by the supporting spouse. The alimony rules applicable to divorces entered into before 2019 differentiates child support payments from alimony.

Therefore, option D is the correct answer.

Balthazar Corporation has total assets of 582, total equity of 269, and a return on equity of 13.98%. The ROA for Balthazar is______________.

Answers

Answer: 6.46%

Explanation:

Return on Assets (ROA) = Net Income / Total Assets

Net Income = Return on Equity * Total Equity

= 13.98% * 269

= 37.6062‬

Return on Equity = 37.6062‬/582

= 0.0646

= 6.46%

Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. Number of Workers Pizzas Baked Per Day 0 0 1 10 2 18 3 24 4 30 5 32 How many workers will Joe hire if he must pay each one $35 a day?

Answers

Answer:

Joe's Pizza Parlor

The highest number of workers that Joe will hire if he must pay each one $35 a day is

4 workers.

If he wants to maximize his profits without satisfying customers' demand, Joe can choose to work with 2 or 3 workers.  However, he can renegotiate the worker's wages downwards.

Explanation:

a) Data and Calculations:

Price of pizza = $5

Wage per worker = $35/day

Number of Workers         0     1      2      3        4       5

Pizzas Baked Per Day      0    12   18     24     30     32

Total revenue                   0   60  90   120    150    160

Marginal revenue             0   60  30    30      30      10

Marginal cost of labor      0    35  70   105    140    175

Profit                                 0    25  20     15      10     -15

 

The number of workers that Joe will hire if he is supposed to pay every worker $35 per day would be:

2 workers

Find the number of workers

Given that,

No. of workers    Pizzas baked every day

 0                                   0

  1                                   12

  2                                  18

  3                                  24

  4                                  30

  5                                  32

Price of pizza [tex]= 5[/tex]

Wage of 1 worker each day = $ 35

If we calculate,

Total revenue for different no. of workers   =  0   60  90   120    150    160

Marginal revenue for varied no. of workers =  0   60  30    30      30      10

Marginal cost of labor  =                                  0    35  70   105    140    175

Profit [tex]=[/tex]                                                             0    25  20     15      10     -15

In order to get pay each labor $35 a day, Joe must hire 2 workers.              

Thus, 2 workers are the correct answer.

Learn more about "Production" here:

brainly.com/question/1969315

Last month, Lani’s Pizza Parlor generated $75,000 in revenues. Her total expenses last month were $63,000. Create the formula Lani needs to calculate the amount of profit she made last month.

Answers

Answer:

$12,000

Explanation:

Calculation for the amount of profit she made last month

Using this formula

Profit=Revenues-Expenses

Let plug in the formula

Profit=$75,000-$63,000

Profit=$12,000

Therefore the amount of profit she made last month is $12,000

Production possibilities curves are useful to businesses because they
A. show how producing one product affects production of another.
B. identify efficient production methods to increase productivity.
C. help make predictions about which products will be profitable.
O D. compare productivity between multiple companies,

Answers

C hehehegehehegg he go

The risk-adjusted discount rate approach is preferable to the weighted-average cost of capital approach:________.

Answers

Answer and Explanation:

The approach to the adjusted risk discount rate would be preferred to the weighted average cost of capital in that case when the projects are under the consideration that have different or various kind of risk attributes or characteristics

So as per the given scenario, the different kinds of risk characteristics would be preferred to the weighted average cost of capital

4 components of macro​

Answers

Answer:

The Macro Environment consists of 6 different forces. These are: Demographic, Economic, Political, Ecological, Socio-Cultural, and Technological forces. This can easily be remembered: the DESTEP model, also called DEPEST model, helps to consider the different factors of the Macro Environment.

Explanation:

Answer:

I believe it is Carbohydrates, Lipids, Proteins, and Nucleic acids

Explanation:

Hope This Helps!!

God Bless!!

~DuffyDuck~

Helppp mee please!!!give me your opinion!

Do you think information system can provide the solution to most organisational
problems? If not, why not?

Answers

Answer:

YES

Explanation:

Information systems can in fact provide solutions to a lot of organizational problems in businesses and companies.  Information Systems can help collect data, statistics, and overall organization. Let's say you are looking into starting a moving business. In order to do that you need to hire employees. An information system such as Indeed can assist you with that. If you are looking to provide invoices to your customers an information system such as Quickbooks can help you with that. There are soo many Information Systems our there that can help a business with any problem.

A bond had a price of $946.72 at the beginning of the year and a price of $983.73 at the end of the year. The bond's par value is $1,000 and its coupon rate is 6.1 percent. What was the percentage return on the bond for the year?
a) 11.04%
b) 6.20%
c) 3.76%
d) 10.35%
e) 9.06%

Answers

Answer:

it can will be something 11.04%

The Lo Sun Corporation offers a 6.2 percent bond with a current market price of $774.50. The yield to maturity is 8.46 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures?
A. 22.43 years
B. 44.86 years
C. 24.98 years
D. 43.04 years
E. 11.22 years

Answers

Answer:

A. 22.43 years

Explanation:

The financial calculator can be used to determine the number of years to maturity as follows:

PMT=31     (semiannual coupon=$1,000*6.2%*6/12=$31)

I/Y=4.23%     (semiannual yield to maturity=8.46%*6/12=4.23% )

PV=-774.50 (current market price=$774.50)

FV=1000 (face value of $1000)

lastly enter N=44.8643664

Note that 44.8643664  is stated in terms of semiannual periods

Years=44.8643664 *6/12= 22.43  years

Sheridan Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the dividend growth rate to be constant at 7 percent. If the required rate of return is 16.00 percent, what is the current value of the stock? (Round all intermediate calculations and final answer to 2 decimal places, e.g. 15.20.)

Answers

Answer:

The current value of the stock is $33.35

Explanation:

The computation of the current value of the stock is shown below:

Particulars     Dividends   PVIF at 16%    Present value

Dividend 1      $5              0.862             $4.31

Dividend 2      $6.25       0.743               $4.64

Dividend 3       $4.75       0.641               $3.04

Dividend 4       $3            0.552              $1.66

Dividend 5        $3.21      

             ($3 × 1.07)

Price of the

stock in 4 years   $35.67    0.552            $19.70

               ($3.21 ÷ (16% - 7%))

Current value

of the stock                                               $33.35

A research survey with outcomes being defined as Poor, Average, Good, Excellent is a random experiment with random variable being of type

Answers

Answer: c. Ordinal

Explanation:

An ordinal variable is one where the variable is used to categorize data in a qualitative way which can be ordered and ranked. For instance, in the case of schooling, the levels are: elementary, high school and college. Graduates from each level can be ranked in relation to each other.

A research survey therefore that has outcomes such as Poor, Average, Good, Excellent is using ordinal variables because these are qualitative and can be ranked in relation to one another.

Experienced project managers understand the value of having team members ________ the project as opposed to appointing team members.

Answers

Answer:

Volunteer for

Explanation:

Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service. Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.

The fundamentals of Project Management are considered universal across most businesses and professions.

The fundamentals of Project Management includes;

1. Project initiation

2. Project planning

3. Project execution

4. Monitoring and controlling of the project

5. Adapting and closure of project.

It is very important and essential that project managers in various organizations, businesses and professions adopt the aforementioned fundamentals in order to successfully achieve their aim, objectives and goals set for a project.

Hence, experienced project managers understand the value of having team members volunteer for the project as opposed to appointing team members.

Draw up a list of effectiveness goals that you would use to measure the performance of (a) a fast-food restaurant and (b) a school of business.

Answers

Answer:

The presented is the list of efficiency guidelines established underneath to evaluate success.

Explanation:

A fast-food restaurant:

Quantified by the institution's earnings. The measurement of efficacy through both the advertisement via recommendations from media.

A school of business:

The efficiency would be determined either by the arrangement offered by the university. These are calculated by that of the outcome that the students received.

An applicant should always print their résumé on paper that is _____.
a.
their favorite color
b.
white or light colored
c.
highly patterned
d.
bright or florescent

Answers

The answer is b) white or light colored

An applicant should always print their résumé on paper that is white or light colored. Thus, option B is correct.

What is Resume?

A résumé, also known as a curriculum vitae, is a document that a person creates and uses to demonstrate their history, abilities, and accomplishments. Résumés can be used for a number of purposes, although they are most commonly utilized to find a new job.

Applicant always prints their résumé on white paper. White is a common paper color that works effectively regardless of the items on your resume. The white paper gives your CV a clean, professional appearance. The white paper may be used for any task or business.

Candidate should always print their résumé on white or light-colored paper. As a result, option B is correct.

Learn more about the Resume here:

https://brainly.com/question/862477

#SPJ6

A bond has a $1,000 face value and a $900 market value. The bond pays interest semi-annually, has a yield-to-maturity of 8 percent, and matures in 5 years. What is the current yield?

Answers

Answer:

the current yield is 6.15%

Explanation:

Here for computing the current yield first we have to determine the monthly payment by applying the PMT formula

Given that

NPER = 5 × 2 = 10

RATE = 8% ÷ 2 = 4%

PV = $900

FV = $1,000

The formula is shown below:

= PMT(RATE;NPER;-PV;FV;TYPE)

After applying the above formula, the pmt is $27.67

Now the current yield is

= $27.67 × 2 ÷ $900

= 6.15%

Hence, the current yield is 6.15%

Lever Age pays an 8% rate of interest on $10.90 million of outstanding debt with face value $10.9 million. The firm’s EBIT was $1.9 million.

Answers

Answer:

a. 2.18 times

b. 2.51 times

Explanation:

Missing question "a. What is its times interest earned? (Round your answer to 2 decimal places.) Times interest earned b. If depreciation is $290,000, what is its cash coverage? (Round your answer to 2 decimal places.) Cash coverage ratio"

a. Interest = Face Value * Rate of interest

Interest = $10.9 million * 8%

Interest = $872,000

Times interest earned = EBIT / Interest

= $1.9 million / $872,000

= 2.18 times

b. Cash coverage = (EBIT + Non Cash expenses) / Interest expenses

= ($1.9 million + $290,000) / $872,000

= $2.19 million / $872,000

= 2.51 times

Last month Peggy Company had a $30,310 profit on sales of $350,000. Fixed costs are $92,190 a month. What sales revenue is needed for Peggy to break even? (Round your answer to the nearest dollar amount.)
a) $122,500
b) $380,310
c) $30,310
d) $263,400

Answers

Answer:

c) 30,310

Explanation:

this is your answer

mark me as brainlist

Blitz Corp. had total sales of $3,010,000 last year and has 106,000 shares of stock outstanding. The benchmark PS is 1.6 times. What stock price would you consider appropriate?

Answers

Answer:

the stock price is $45.44

Explanation:

The computation of the stock price is shown below:

Sales per share is

= Total sales ÷ stock outstanding  shares

= $3,010,000 ÷ 106,000 shares

= $28.40

Now

Benchmark PS = Stock price ÷ Sales per share

Stock price = $28.40 × 1.6

= $45.44

hence, the stock price is $45.44

We simply applied the above formula so that the correct value could come

And, the same is to be considered

The demand curve suggests that an auto manufacturer will sell 20,000 Mercedes-Benz M-Class vehicles when they are priced at $50,800, but when the price is reduced to $45,000, that quantity will increase to 27,000 units. What is the resulting elasticity?
a. -4.38
b. 6.73
c. -3.07
d. 1.24

Answers

Answer:

c. -3.07

Explanation:

price elasticity of demand = % change in quantity demanded / % change in price

% change in quantity demanded = (27,000 - 20,000) / 20,000 = 0.35 = 35%% change in price = (45,000 - $50,800) / $50,800 = -0.114 = 11.4%

price elasticity of demand = 35% / -11.4% = -3.07 or |3.07| in absolute terms

since the price elasticity is higher than |1|, then it is price elastic, which means that a 1% change in price will change the quantity demand in a higher proportion.

The elasticity of demand will be -3.07.

The percentage change in quantity will be:

= (27000 - 20000) / 20000 × 100

= 7000/20000 × 100

= 35%

The percentage change in price will be:

= (45000 - 50800) / 50800 × 100

= -5800/50800 × 100

= -11 417%

Therefore, the elasticity will be:

= 35% / -11.417%

= -3.07.

In conclusion, the correct option is -3.07.

Read related link on:

https://brainly.com/question/22201107

An employment interview designed as a free-flowing dialogue is referred to as a(n) _____ interview.

Answers

Answer:

2). open

Multiple -choices

1). behavioral 2). open 3). semiprofessional 4). standard

Explanation:

An open interview is designed as a free-flowing dialogue between the interviewer and the applicant. The interview can be conducted in a group or individual format. The interviewer does not present themselves with a set of prepared questions for the candidates to respond.

An open interview can be conducted either in the office or outside the office. They are more casual than formal and may lead to instant job offers.

Answer:

open

Explanation:

Treasury bonds paying an 10.00% coupon rate with semiannual payments currently sell at par value. What coupon rate would they have to pay in order to sell at par if they paid their coupons annually?

Answers

Answer:

10.25%

Explanation:

The requirement which is Coupon rate can be calculated using EAR formula.

EAR = (1 + APR/n)^n - 1

EAR = (1 + 10.00%/2)^2 - 1

EAR = (1 + 0.1/2)^2 - 1

EAR = (1 + 0.05)^2 - 1

EAR = (1.05)^2 - 1

EAR = 1.1025 - 1

EAR = 0.1025

EAR = 10.25%

10.25% is the coupon rate for annually paying bond.

Pr 6-3a weighted average cost method with perpetual inventory

Answers

Answer:

3.0

Explanation:

K Company estimates that overhead costs for the next year will be $3,700,000 for indirect labor and $960,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 125,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate?

Answers

Answer:

Predetermined manufacturing overhead rate= $37.28 per direct labor hour

Explanation:

Giving the following information:

Estimated overhead= 3,700,000 + 960,000= $4,660,000

Estimated direct labor hours= 125,000

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 4,660,000/125,000

Predetermined manufacturing overhead rate= $37.28 per direct labor hour

If a monopolist claims his profit-maximizing markup factor is 3, what is the corresponding price elasticity of demand?a. -1.5.b. -2.0.c. -2.5.d. -3.0.

Answers

Answer:

a. -1.5

Explanation:

The computation of the price elasticity of demand is shown below:

As we know that

Price elasticity of demand = E ÷ 1 + E × MC

E ÷ 1 + E × (3)

3 + 3E = E

3E - E = -3

2E = -3

E= -3/2

E = -1.5

Hence, the price elasticity of demand is -1.5

Therefore the correct option is a.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 7 percent and 4 percent, respectively. Assumr risk free rate of 2%.
a) Estimate the Sharpe ratio of each mutual fund
b) According to the Sharpe ratio, which fund performed better?

Answers

Answer:

a) 0.9 & 1

b) Mutual Fund B

Explanation:

For starters, I will define what Sharpe ratio is.....

Sharpe ratio is tagged, the measure of risk-adjusted return of a financial portfolio. It is worthy if note that on the average, a portfolio with a higher Sharpe ratio is considered superior relative to its peers.

You the question, the Sharpe ratios would be calculated as follows:

(Return of portfolio - risk free rate) / standard deviation.

So, for Mutual Fund A:

A = (12% - 3%) / 10%

A = 9% / 10%

A = 0.9

For Mutual Fund B:

B = (10% - 3%) / 7%

B = 7% / 7 %

B = 1

Although the Mutual Fund in A is calculated to have a higher return, the Mutual Fund B is laced with a higher risk-adjusted return.

Select the correct answer.
Which of the following careers is NOT part of the career areas discussed in this unit?
A. Preschool teacher
B. Special education teacher working with two year olds
C. Elementary school teacher
D. School social worker

Answers

The answer is D. School social worker

In using the variable cost concept of applying the cost-plus approach to product pricing, variable manufacturing costs and variable selling and administrative expenses must be covered by the markup. 1) True 2) False

Answers

Answer:

True

Explanation:

In the variable cost concept, all the variable manufacturing cost should be covered in the markup for product pricing. The Cost-plus approach determines the pricing of the product by adding the cost of the product whether buying or Manufacturing in the required markup.

In a cost-plus approach under variable

Price of the product = Variable costs + Markup

Price of the product = ( Material cost + Labor cost + Variable manufacturing cost + Variable selling and administrative cost ) + ( Total variable cost x Markup rate )

Other Questions
After photosynthesis, energy that the coral can use is stored inmolecules of?Answers: O2 CO2H2OC6H12O6 What was Newton's second law? BRAINLIEST FOR THE BEST ANSWER DUE IN FIVE MINUTES PLEEAASSEE ANSWER Scientists who study ocean life use an unmanned robot to collect deep sea data. The robots is known as a(n) __________.A)nereusB)aquariusC)deep sea robotD)underwater robotE)aquatic robot Solve the equation for y.2/5 x+y=3 Which word or phrase from this sentence gives a clue to what hasten means?Karen went to bed early hoping to hasten, or hurry, thearrival of her birthday.A. EarlyB. Or hurryC. Went to bedD. The arrival of her birthday This is for xiclaliascencio plsDO NOW: REVIEW QUESTIONS MEDIADirections: Use your brain & previous lessons &/or Cornell to answer:1. How old is the tradition of printed news in what is now the USA?2. What is the difference between yellow journalism & muckraking?3. Whats the foremost way for Americans to get their news?4. What is the danger of relying on the internet, social media, & blogs for news?5. What is the easiest branch of the government to cover? Why?6. What is the bullypulpit used for?7. What does the medias watchdog role refer to? What parts of plants create weathering Which words create an order of events in the poem? friends and giggles without and words crouched and low before and finally The Second Amendment gives the citizen the right to _____. Whats the slope,y-intercept, transformations of (-) and (2) Two groups of students order hamburgers and hot dogs at a local restaurant. The first group orders 3 hamburgers and 4 hot dogs for a total cost of $30.33. The second group orders 3 times as many hamburgers as the first group and 5 hot dogs. The second groups total is $63.06. What is the cost of a hamburger at this restaurant? 7. A species is _ when its population has become so low that it is close to becoming extincta. Massive logging b. endangered c. pollutants d. populationpa help po,,, In a _________, few limits are placed on business activities. a. free enterprise systemb. factors of productionC. scarcityd. retail industries what is the slope of (7,-8) and (9,9)..... HURRYAn ultrasound tech is trying to identify an object, but the screen of the machine is broken. Which statement best describes this situation?The generated sound wave will not be able to reflect off of the object.The sound wave will not be generated, so there will be no echoes received.The echoes will be made but will not be able to be received by the machine.The machine will not be able to process the received echoes into images. what is the acceleration of a softball if it has a mass of 0.50kg and hits the catchers glove with a force of 25 N Explain depth perception. Read and choose the option with the correct answer.I am Roberto from Florida, and I am getting married in April. My Cuban godparents used to tell me about weddings in Cuba. Before the wedding, the bride and the groom would not see each other because it was bad luck. Thats similar to what I know about weddings in the United States. In Cuba, the brides parents paid for the wedding and the reception. During the reception, the bride threw flowers to the other single girls. I have actually seen this at a wedding I attended in the United States. The bride and groom received gifts from the guests. The guests also danced with the bride, and the men placed money onto the brides dress. The bride and groom would use the money to pay for the honeymoon.Whats something that may NOT happen at a more typical or traditional American wedding? The dance after the ceremony The flower tradition The money attached to the dress The reception A large crate is pushed to the right along a rough surfaceby a320 N applied force. The friction force due to the surfaceis 100 N, and the mass of the box is 40 kg. Determine thenet force acting on the crate.A. 400 NB. 320 NC. 100 ND. 220 N Tia read 0.46 of the book assigned for class. Kiana read 33 out of the 72 pages. Who read more of the book?