subject
Business, 14.05.2021 23:50 jukesjameson12

A 6-month European call option on a dividend-paying stock is currently selling for $4. The stock price is $100, the strike price is $95, and a dividend of $0.90 is expected in 2 months. The risk-free interest rate is 1% per annum for all maturities. What opportunities are there for an arbitrageur

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 17:20
Luis and rosa, citizens of costa rica, moved to the united states in year 1 where they both lived and worked. in year 3, they provided the total support for their four young children (all under the age of 10). two children lived with luis and rosa in the u.s., one child lived with his aunt in mexico, and one child lived with her grandmother in costa rica. none of the children earned any income. all of the children were citizens of costa rica. the child in mexico was a resident of mexico, and the child in costa rica was a resident of costa rica. how many total exemptions (personal exemptions plus exemptions for dependents) may luis and rosa claim on their year 3 joint income tax return? a. 6 b. 5 c. 4 d. 2
Answers: 3
question
Business, 22.06.2019 01:50
Atlas manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. currently atlas produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. what is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change? a. total manufacturing costs will increase and unit manufacturing costs will also increase. b. total manufacturing costs will stay the same and unit manufacturing costs will stay the same. c. total manufacturing costs will increase and unit manufacturing costs will decrease. d. total manufacturing costs will increase and unit manufacturing costs will stay the same.
Answers: 1
question
Business, 22.06.2019 05:30
In most states, a licensee must provide a(n) of any existing agency relationships to all parties
Answers: 3
question
Business, 22.06.2019 06:40
After the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy?
Answers: 1
You know the right answer?
A 6-month European call option on a dividend-paying stock is currently selling for $4. The stock pri...
Questions
question
Mathematics, 06.05.2020 09:59
question
Mathematics, 06.05.2020 09:59
question
Health, 06.05.2020 09:59
question
Mathematics, 06.05.2020 09:59
Questions on the website: 13722367