Find the PUT option price using the following data: S0 = $215 X = $220 Risk-free Int Rate = 5% Two possibilities of ST at expiration: $200 or $250 Expiration: 2 years from today Upload a Word or photo file. Keep 2 decimal places.

Which is the better option if the interest rate is r=0.07 (r=7%)? Show all work used to arrive at your answer. a. Option I: Receive $510 today at time t=0. b. Option II: Receive $1000 at time t=10.

Waiting periods. Fill in the number of periods for the following table,, using one of the three methods below: In (FV/PV) In (1 + r) a. Use the waiting period formula, n = b. Use the TVM keys from a calculator. c. Use the TVM function in a spreadsheet. Present Value 760.13 Future Value $ 1,585.01 Interest Rate 3% Number of Periods years (Round to the nearest whole number.)

Two alternative courses of action have the following schedules of disbursements. If the MARR is 6% which alternative should be selected? Use present worth analysis. Show your calculations in your working document. Also note that in periods 4 and 5, the values for option B should be - 400 and - 500 respectively. Year 0 1 2345 2 3 A B -$1,300 0 0 0 0 0 $1,300 - $100 -200 -300 400 500 $1,500

An annuity pays $200 at the end of each period for 10 periods. Set up the CFs in an Excel spreadsheet. The current value of this stream of CFs is $1,544. What is the implied discount rate? Solve the problem using the following approaches: a. Use trial and error or Goal Seek in Excel (tab Data/What-if-Analysis). b. Use the excel built-in function RATE.

For problem 2, use the following information: Consider 3-month options with premium Strike 35 Call Premium Put Premium 6.13 0.44 40 2.78 1-99 45 0.97 5.08 and the effective annual interest nate 8.33% 2. write down the pay off function, profit function and draw a profit diagram for the following options: (i). Straddle: buy a call and a put with Strike 40. I will be good for both up/down but high premium). (ii) Strangle Call buy 25- strike put and 45- Strike (iii) Symmetric butterfly spreads : straddle + buy 25- Strike written put and 40- Strike 45- Strike call.

How long do the following options have before they expire?Call Price = $5Put Price = $9Stock Price = $65Exercise Price = $70Risk-free rate = 3% per annum

Find the present value PV of the given future value. (Round your answer to the nearest cent.) future valye $1,118 at .03625 simple interest for 518 days  PV = $

a. Using the following information, calculate the price of a 12-month short call option using a two-step binomial tree procedure. So = £15, K = £16, r = 5% (annual), o = 30% (annual). You are given the following equations: Р a-d u-d (1) a = erst (2) f = [pfu+ (1-p)fale-rat (5) u = eo√At (3) d = ² (4)

Calculate the continuation value of KMS using the following table, and assuming an EBITDA multiple of 8.5. (Click on the following icon in order to copy the contents of the table below into a spreadsheet.) -2019 $16,476 2020 $18,116 The continuation value is $ 2021 $19,875 2022 $21,792 thousand. (Round to the nearest integer.) 2023 $23,882 EBITDA (000) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. 2024 $26,162