Just checking to see if I got these right, thanks in
advance.
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Question 1 part C - Since it is in the money and has an intrinsic value, the following rule applies - As the price of a stock increases, the premium on call increases.
For put, the premium will decrease as the stock prices increases.
Just checking to see if I got these right, thanks in advance. . Question 1. The May 20 corn futures are trading...
time period, you will get zero points. Question 1 10 In May, December futures were trading at $5.50/bushel and Josh bought a Dec $5.50 put for 45 cents for downside protection. By the time he harvested his corn, prices had fallen to $4.50/bushel and the basis when he delivered his corn was 10 under. What did he net for his corn? 1 $4.40 2) $5.05 3) $4.95 4) $4.45 Question 2 A farmer who says he's going to use an...
I need to know process of computing those problem and why that answer is correct. 1. An XYZ OCT 30 call option is trading at a premium of 2 and 1/2. If XYZ is trading at 28, the option has which two of the following properties? 1. An intrinsic value of 2 2. An intrinsic value of 0 3. A time value of 1/2 4. A time value of 2 and 1/2 Answer : 2 and 4 2. M. Bullock...
The premium paid on an option contract (either a put or a call) represents the compensation the buyer of the option receives from the seller (writer) of the option for the ability to use the option if it becomes profitable. If the buyer of the option does not use the option before expiration, this premium must be returned back to the seller (writer) at the time the option expires. True False 2 points QUESTION 3 On the day of...
1. Which of the following trades implies that ownership has been taken? a. Buying a futures contract. b. Selling a futures contract. c. Buying a stock. d. Shorting a stock. e. None of the above implies ownership. The following transactions are the only ones made during the first 4 days a futures contract trades. Answer question 2 based on this table. DAY TRANSACTION S O 1 A Long 30, B Short 30 2 A Long 55, C Short 55 3...
True/False (1 Point each) 1) When bond prices decrease, their yields to maturity increase. 2) The best forms of money and financial systems enjoy the benefits of trust, belief, and stability. 3) A fundamental function of a commercial bank is to take in deposits and make loans. 4) Traditional banks operate with low margins and high leverage. 5) Rates on bonds issued by a government can be negative. 6) ) The default risk premium is the same as the credit...
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need solutions of question 2,3 and 4.
1. 151 The graphic below shows actual inflation (this is labeled "headline inflation" in the chart) and inflation targets for a number of countries in 2014 September 2014 or latest Senden! South Korea United States Australia Japan India Using only information in the chart and frameworks developed in this class (ie,not subsequent events), please answer the following questions a. [5 points] At the time of the chart, which monetary policy would you...
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need answers of question 3 and 4.
1. 151 The graphic below shows actual inflation (this is labeled headline inflation" in the chart) and inflation targets for a number of countries in 2014 September 2014 or ltest Seeden South Korea Japan India Using only information in the chart and frameworks developed in this class (i.e., not subsequent events), please answer the following questions a. [5 points] At the time of the chart, which monetary policy would you have recommended...
Coca-cola in India case.
1. What aspects of US culture and of Indian culture may have
been causes of Coke's difficulties in India?
2. How might Coca-Cola have responded differently when this
situation first occurred, especially in terms of responding to
negative perceptions among Indians of Coke and other MNCs?
3. If Coca-Cola wants to obtain more of India’s soft drink
market, what changes does it need to make?
4. How might companies like Coca-Cola and PepsiCo demonstrate
their commitment...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...