The model value of put option calculated by using binomial model is 10. Hedge ratio is 4/9. If market price of call is Rs 8, which of the following is required to take arbitrage benefit? Select one: O a. Buy 4 stock and 9 put options Ob. Buy 4 stocks and sell short 9 stocks Write 4 puts and sell short 9 stocks Buy 9 stocks and buy 4 puts O c. O d.

Q: 7) What is an ESOP? What are the characteristics and rules of an ESOP plan?

A: ESOP stands for Employee Stock Ownership Plan. It is a kind of employee benefit plan that gives the…

Q: Q6. Suggest a reagent for the following conversion. OH

A: In the conversion shown, the goal is to oxidize a secondary alcohol (2-butanol) to a ketone…

Q: What is Reg D?

A: Regulation D (Reg D): It may be a Securities and Exchange Commission (SEC) law confining exceptions…

Q: Explain the Rule of 72.

A: In investment and saving management, the doubling period techniques provide the valuation of the…

Q: Q7-1. What is interest? Explain.

A: Interest is a financial term regularly used when money is lent or received as a loan. Interest…

Q: What is WACC

A: Weighted average cost of capital(WACC) is the average cost of several source of financing. It is…

Q: Question 8

A: When net credit sales is divided with average accounts receivable it results in receivable turnover…

Q: Explanation 1031 like-kind exchange

A:

Q: What is the SML? What is the CAPM? What is the APT?

A: Security Market Line (SML):The Security Market Line (SML) is a graphical representation of the…

Q: How about the second question?

A: As per the accounting standard- the effects of changes in foreign exchange currency, income and…

Q: hat is APY

A: In interest there is compounding and other is simple interest. In the compouding there is interest…

Q: WHAT'S THE ANSWER TO D, E AND F?

A: Given, Net nonoperating obligations (NNO) Return on equity (ROE) Nonoperating return component of…

Q: how this 0.625 comes ?

A: Coupon bond comes with semiannual coupons at a certain rate.  This is the amount of cash received in…

Q: Define Volcker rule

A: Volcker Rule is a regulation that implies restrictions on the banks to involve in the stock market…

Q: Which of the following value is concerned with the way we approach the end states?

A: Option a

Q: What is MM Proposition I?

A: Modigliani and Miller’s approach is an element of economic theory and it forms the basis for modern…

Q: 17. What are the key features of ERISA?

A: The Employee Retirement Income Security Act of 1974 (ERISA) is a federal statute that provides basic…

Q: Narrate how AIS adds value.

A: Accounting information system (AIS): An accounting information system is used for collection,…

Q: What is PNL?

A: The term PNL is used in accounting, finance, and business to refer profit and loss.

Q: Define regulation D

A: The Accounting Standards are specific set of principles and procedures set by the authorized bodies…

Q: How about the last question?

A: Here,Operating Cash Flow is $63,745Cash Flow to Creditors is $22,100Cash Flow to Stock Holders is…

Q: Describe about the NOL.

A: NOL means Net Operating Loss. This is a situation when company's deductions are more than it's…

Q: Define Will.

A: A will is a legal document in which a person specifies how his property is going to be distributed…

Q: I Need Formulation

A: Part a: Contribution margin ratio for 2012=Net sales-Total variable costNet…

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.