Chapter 09

3. Repeat the analysis of the slide 18 titled "Try The Formula" for a call with a strike of $110. Şe = $100 r=10% /What is the premium? Try the problem using the risk neutral probability; also try the problem using delta and B. u=2 d=1/2=0.5 %3D

Suppose that the borrowing rate that your client faces is 8% Assume that the equity market index has an expected return of 12% and standard deviation of 28%, that ry - What is the range of risk aversion for which a client will neither borrow nor lend, that is, for which y-1? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. y=1 for SAS

Determine the future value of the following single amounts Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (EV of $1. PV of $1. EVA of $1.PVA of $1. EVAD of $1 and PVAD of $1) Invested Amount 15.000 20,000 30.000 50,000 1 S 3 234 $ 4 S 1 = ON 0% 12% 4% n = 12 10 20 12 Future Value

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Suppose that the borrowing rate that your client faces is 7%. Assume that the equity market index has an expected return of 11% and standard deviation of 35%, that rf=2% What is the range of risk aversion for which a client will neither borrow nor lend, that is, for which y=1? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. y= 1 for ≤A≤ 0.73

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Determine the present value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) 1. 2. 3. 4. Future Amount $ 28,000 22,000 33,000 48,000 $ $ 9% 10% 12% 11% n= 14 17 28 13 Present Value

Determine the future value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) 1. 2 3. 4. Invested Amount 18,000 28,000 $ $ $ $ 40,000 61,000 8% 5% 5% 8% Ax 8 15 10 8 Future Valu THE

2 - Note: You must show formulas and cell references when computing all values in the GREEN CELLS.

Which of the following investments does a rational investor prefer? a. Investment A: E(R) = 12%, σ = 5%   b. Investment B: E(R) = 10%, σ = 5.5%   c. Investment C: E(R) = 11%, σ = 6%   d. Investment D: E(R) = 11.5%, σ = 6%

For the following diagram, assume P= $600 and A= $1200. Compute the rate of return (%): 0 The answer is close to O 1 2 3 4 5 6 7 8 9 12 16 O 18 O 14 10 A 11 12 13 14 15 16 17 18 19 20 5000 n=co

Please help me answer this question in Excel Form 2. The risk-free rate is 4%, and the required return on the market is 12%. b. A portfolio invests 40% in the asset in (a) and the rest in a market portfolio. What is the required return on this portfolio? Thanks :)

Calculate the issue price

Fisher Equation: Nominal, Real, and Inflation = 10%. Expected inflation is E(T) = Q1) You lend money to a business colleague at a rate of i 3.5%. What is your real rate of return r? Use the exact Fisher Equation. = Q2) How much would you charge a colleague on a loan of $100 if you want your real rate or return to be r = 6% and the expected inflation is E(л) = 4%. E.g., what is the nominal rate i? Use the exact Fisher Equation. Q3) A corporate bond pays investors both a fixed and variable rate of return. The fixed rate is constitutes the real return which is r = 4.5%. The variable rate is indexed to the CPI and is to compensate investors for inflation. If the expected inflation in the next year is E(T) = 2.5%, what is the nominal rate of return i the company will have to pay? Enter your answer in the table below in the cells colored in yellow. You must show all work to receive credit. Q1) r= |Q2) i= ||Q3) i= Answer

If the risk free rate is 4% and the risk premium is 10, and beta is 1 what is the required rate of return? 0-6% 5% 14% 6%

What is portfolio A's CAPM beta based on your analysis? Round off your answer to three digits after the decimal points. State your answer as a percentage point as 1.234.   Compute the Treynor measure for portfolio B. Round off your answer to three digits after the decimal point. State your answer as 1.234

Find the total value TV of the given income stream and also find its future value FV (at the end of the given interval) using the given interest rate. HINT [See Examples 4, 5.] (Round your answers to the nearest cent.) R(t) = 50,000, 0 < t < 5, at 10% TV - $189539.34 FV = $305255 Submit Answer X × 12

Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10, and σA = $3.63; E(EPSB) = $4.20, and σB = $2.94. Do not round intermediate calculations. Round your answer to the nearest cent.   Probability   0.1 0.2 0.4 0.2 0.1 Firm A: EPSA ($1.61) $1.80 $5.10 $8.40 $11.81 Firm B: EPSB (1.20) 1.30 4.20 7.10 9.60 Firm C: EPSC (2.59) 1.35 5.10 8.85 12.79 E(EPSC): $   You are given that σc = $4.12. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Do not round intermediate calculations. Round your answers to two decimal places.   CV A   B   C   The most risky firm is .

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please solve using the equations for the first row then the excel function for the second row.

please help me find how to get that answer for this question, please help NO EXCEL

MCQ: SHADE answer in MCQ sheet on page 1 1. Which is better, $1 NOW or $1 a year from now? a. Now b. 1 year later C. Same value 2. When borrowing money for a project, the lower the risk the higher the interest rate a. True b. False 3. Calculate the missing value: Interest ($) Principal($) 1,500 Rate Time (months) 2.5°% 7 months a) $21.88 b) $39.96 c) $33.25 d) 20.25 4. Calculate the missing value: Principal($) Rate Time (months) Interest($) 10.25 o 1l months 328.85 a) $5,000 b) $3,499.96 c) $4,533.25 d) None of these 25 ASUS f8D/点) prt sc deletr insert, f7 f10 f11 f12

2. A local bank is offering a promotional deal where if you open a bank account for at least $1000, they will give you a $25 gift certificate card and pay 4% interest on the account. Does this promotion result in a higher or lower return on your account? If you invest $1000, maintain the balance for 1 year, and earn 4% on the account, what is your rate of O YrS return? annuiln front i Fhe discurria

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