which has a anualize rate of 6.02%. So at the end she will win 5310$ (=5000*1.0602). 2- She takes the options in order to sell her stock options. Let’s assume that it is easy to find someone who want to buy the option at the value of the call option. Using the exhibit 3, the standard deviation of the Telstar common stock is 30%. S= 18.75 K= 35 r= 6.02% t= 5 σ= 30% So C= 2.9245 Assuming that she can easily and quickly find someone to buy her options, she can sell it at 3000*2
Words: 1203 - Pages: 5
effects of call options and put options on the accounting for transfers of financial assets under ASC 860, Transfers and Servicing: Overall (ASC 860) (FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities (Statement 140)). The specific topics, highlighted in the examples below, include (1) attached call options on specific assets and freestanding call options on specific assets readily obtainable elsewhere, (2) conditional call options on
Words: 708 - Pages: 3
trying to sell you windows, doors, or something else. It is one of the most annoying phones calls of the day because, that is the time of day that everyone is sitting down and relaxing and being a family. There are two acts in place to help with the calls from telemarketers. Unfortunately, there are rules to every act and they may not stop all telemarketing calls but will help with them. One act is the “Do not Call Implementation Act of 2003” and the other is the “Telephone Consumer Protection Act (TCPA)
Words: 676 - Pages: 3
calculated by above models make a consistency with the market? The goals of this team project are the answering that question and reasoning the answer. Part. 1: Preparation 1) Collecting historical data We investigated the stock call options and put options of EXXON Mobil. The historical stock price daily data are for 6 months from November 16, 2011 to May 15, 2012. We assume that U.S. Treasury bill with maturity 3 month is risk-free, and use its yield to maturity as risk-free
Words: 2321 - Pages: 10
Ch20-11 A: Call Options Call option | Strike price($) | Ask price($) | Calculation($) | Stock price to break even | IBM12221200-E | 200 | 6.65 | 200+6.65 | 206.65 | IBM12221205-E | 205 | 2.49 | 205+2.49 | 207.49 | IBM12221210-E | 210 | 0.42 | 210+0.42 | 210.42 | IBM12221215-E | 215 | 0.08 | 215+0.08 | 215.08 | IBM1222J200-E | 200 | 8.45 | 200+8.45 | 208.45 | IBM1222J025-E | 205 | 5.00 | 205+5.00 | 210.00 | IBM1222J210-E | 210 | 2.54 | 210+2.54 | 212.54 | IBM1222J215-E | 215
Words: 1173 - Pages: 5
Sooner or Later On January 1, 2006, Sooner or Later Inc. granted its employees 1,000 “at the money” employee stock options, which will vest only when cumulative revenue in the next three-year reporting period exceeds $10 million and the employees are still employed by the company. As of the grant date, management believes that it is probable that the company's cumulative revenue over the next three-year period will be greater than $10 million. The grant-date fair value for each award is $9
Words: 609 - Pages: 3
1. What changes are there in Eric’s character in the course of this act? Eric has been seen as a foolish, immature young man in his interactions with other characters early in the play, we have learnt that he has been a steady drinker for two years and that he is treated childlike, for example, Mrs Birling assumes that Eric and his sister are tired because he is apart of the younger generation although he is old enough to be responsible for his actions. In Act Three the Inspector questions Eric
Words: 840 - Pages: 4
1. | Question : | (TCO C) Brammer Corp.'s projected capital budget is $1,000,000, its target capital structure is 60 percent debt and 40 percent equity, and its forecasted net income is $550,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out? (a) $122,176 (b) $128,606 (c) $135,375 (d) $142,500 (e) $150,000 | | | Student Answer: | | Answer (e) Equity capital budget=1,000,000X0.4=400,000 Projected max dividend=550,000-400,000=$150
Words: 906 - Pages: 4
Keeping Conversation Flowing Some conversations refuse to flow. Often, this is a result of a clash of the conversational styles of the two people involved. One may be all enthusiasm and sympathy; the other may be quiter and more private. As a result, the other backs off. Another problem is when someone is not interested enough in the other person. A. Improving Your Style Good conversation requires diplomacy and tact. It is give and take. Avoid the following conversation killers: 1
Words: 2050 - Pages: 9
Go-to-meeting Conclusion Life behavior changing by new technology New technology and service expecting to market! Introduction Traditional communication method Face to face Tele-audio Simplest way - Telephone, 2 parties only Conference call – One way + multiple parties Three-way calling Tele-video Mobile links to satellites using specially equipped trucks Online conference What is online conference? Online means “Connected to a computer and internet, we called this as “Web
Words: 801 - Pages: 4
