The current price of a non-dividend-paying stock is $40. Over the next year it is expected to rise to $42 or fall to $37. Assume the risk-free rate is 2% (continuously compounded). An investor buys put options with a strike price of $41. What is the value of each option using a one-period binomial model? The risk-free interest rate is 2% per annum. Assume non continuous compounding. A. $3.93
B. $2.93
C. $1.93
D. $0.93

According to the map, which continent has the most countries with a low gdp level? which two countries have the highest gdp level?

Evelyn would like to open a small business that is categorized as a being in the distribution industry. to do this she could open a establishment.

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,500 are payable at the beginning of each year. each is a finance lease for the lessee. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) situation 1 2 3 4 lease term (years) 3 3 3 3 asset’s useful life (years) 3 4 4 6 lessor’s implicit rate (known by lessee) 14 % 14 % 14 % 14 % residual value: guaranteed by lessee 0 $ 5,000 $ 2,500 0 unguaranteed 0 0 $ 2,500 $ 5,000 purchase option: after (years) none 2 3 3 exercise price n/a $ 7,500 $ 1,500 $ 3,500 reasonably certain? n/a no no yes