The following option prices were observed for calls and puts on a stock for the trading day of July 6 of a particular year. Use the information for the following problem. The stock was priced at $165.13, and the expirations on the options were July 17, August 21, and October 16. The continuously compounded risk-free rate associated with the three expirations were 0.0503, 0.0535, and 0.0571, respectively. The standard deviation of the continuously compounded return on the underlying is 21%. Assume that these are all European options. CALLS PUTS
Strike JUL AUG OCT JUL AUG OCT
155 10.50 11.75 14.00 0.19 1.25 2.75
160 6.00 8.13 11.13 0.75 2.75 4.50
165 2.69 5.25 8.13 2.38 4.75 6.75
170 0.81 3.25 6.00 5.75 7.50 9.00

Use the Black-Scholes-Merton European put option pricing formula for the October 165 put option.

a. What is the theoretical fair value of the October 165 Put?
b. Based on your answer in part a recommend a riskless strategy.
c. If the stock price decreases by $1 how will the option position offset the loss on the stock?

Which type of data is generally stored in different file formats, such as text files, spreadsheets, and so on?

Jamie lee is reviewing her finances one month later. she has provided the actual amounts paid below. use the cash budget table below to her identify the variances in her budget. each answer must have a value for the assignment to be complete. enter "0" for any unused categories. actual amounts income: monthly expenses: gross monthly salary $2,315 rent obligation $260 net monthly salary $1,740 utilities/electricity $130 savings allocation: utilities/water $10 regular savings $130 utilities/cable tv $155 rainy-day savings $20 food $160 entertainment: gas/maintenance $205 cake decorating class $90 credit card payment $25 movies with friends $50 car insurance $75 clothing $145 budgeted amounts assets: monthly expenses: checking account $1,850 rent obligation $225 emergency fund savings account $4,300 utilities/electricity $75 car $5,200 utilities/water $35 computer & ipad $1,100 utilities/cable tv $120 liabilities: food $115 student loan $6,600 gas/maintenance $95 credit card balance $1,000 credit card payment $45 income: car insurance $45 gross monthly salary $2,155 clothing $45 net monthly salary $1,580 entertainment: savings allocation: cake decorating class $90 regular savings $130 movies with friends $50 rainy day savings $20

An outside manufacturer has offered to produce 60,000 daks and ship them directly to andretti's customers. if andretti company accepts this offer, the facilities that it uses to produce daks would be idle; however, fixed manufacturing overhead costs would be reduced by 75%. because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. what is andretti's avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?