Finance In a bull put spread strategy, if I long September 1150 OKLI put with premium 25 points and short September 1200 OKLI put with premium 56 points, my maximum profit is ____________, maximum loss is ____________ and the break-even point at expiry is ___________. a. 31 points; 19 points; 1169 b. 19 points; 31 points; 1181 c. 19 points; 31 points; 1169 d. 31 points; 19 points; 1181

Q: (a) How much does she need for the down payment? How much money does Maria need to borrow? (b) What…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: Bond Quote DEERE, Inc. Current Price: $98.00 Face Value: $100.00 Annual Coupon Rate: 3% Coupons Per…

A: Yield to Maturity refers to the internal rate of return which is earned by the investor who makesthe…

Q: Fast Distribution Company expects its September sales to be 20% higher than its August sales of…

A: Cash balance at the end of September 30 can be calculated by using this equation Cash balance at end…

Q: Although its own operations have shown no growth over the past decade, Hammerworks Inc. has built up…

A: Acquisitions: When a company takes over or buys another company it's said to have acquired a…

Q: You want to purchase a new car in 4 years and expect the car to cost $40,000. Your bank offers a…

A: Solution:- When an equal amount is paid each period at the end of period, it is called ordinary…

Q: In the same credit card, for the month of December, the customer plans to purchase on Dec 05 an item…

A: December 5, 2020 was Saturday There are 4 Monday after December 5,2020 i.e., 7th, 14th, 21st and…

Q: WhenyoubuyabondforPhP2,000anditpays3%annualinterestfor10years.Howmuchinterest payments would you…

A: Interest payments can be calculated as: = Face Value * Interest rate

Q: A city is spending $19.3 million on a new sewage system. The expected life of the system is 40…

A: Capitalized worth is used to measure an investment’s current worth based on how much income it can…

Q: Critically discuss five (5) factors firms should consider when deciding to invest in a country.

A: When making investment in country we need to take care that we should invest in country where…

Q: The following cash flow diagram indicates the yearly payments you will make in the future. Assume…

A: The Present Value of money: The value of a cash stream to be received or paid at some time in the…

Q: How would I calculate the nominal interest rate that is used in the effective annual rate equation…

A: Total number of periods = 12 Loan payment is 15000 Monthly payment is 1387.5 To Find: Nominal…

Q: Parker & Stone, Incorporated, is looking at setting up a new manufacturing plant in South Park to…

A: Cash Flows: Cash flows are the cash generated from the operation of the business organization. In…

Q: Bruin, Incorporated, has identified the following two mutually exclusive projects: Year 0 1 2 1234 3…

A: To Find: IRR NPV NPV profile for both projects

Q: d Standards of treatmen forcip

A: Direct investor refers to the investment which is designed for acquiring the controlling interest…

Q: A project requires a $2 million investment in net working capital (NWC) today, and will be fully…

A: Initial Investment = $ 2 million PV = C * 1-1+i-ni C = PV1-1+i-1i PV = 2 million i = 0.12 n = 5…

Q: Assuming you made all the weekly payments for 12 years and left the money in the account without…

A: Future Value of Annuity: It refers to the future worth of the annuity stream of cash flows over a…

Q: Required return              8.50 percent   ________ 1.     What is the net present value of the…

A: Net present value is the difference between the present value of cash flow and initial investment.…

Q: What is the Value of the bond on April 1, 2024, when the market rate is 7.0% if:   The bond is…

A: Bond valuation (BV) refers to a method or technique which is used to compute the current value or…

Q: ‘BNM acts as lender of a last resort’. This statement implies that   Select one: BNM may provide…

A: A central bank is the lender of a last resort or comes to the fore in case of liquidity issues for…

Q: ZXA is considering investments in four different projects. Select all projects that have…

A: Conventional cash flows are cash flows that go in one direction over time.If initially there is an…

Q: a. What are the net cash flows of the project each year? Note: A negative answer should be indicated…

A: Net present value (NPV) of an alternative/project refers to the difference between the initial…

Q: A firm depreciated its assets with regard to an investment to $0.00 book value by the end of the…

A: Deprecation is the accounting method under which cost of assets will be claimed as expenses by…

Q: We understand standard deviation of returns as a measure of risk and rational investors would like…

A: Option is a future right not an obligation to sell or buy the underlying asset or security at a…

Q: National Business Machine Company (NBM) has $4.2 million of extra cash after taxes have been paid.…

A: Here, After-tax cash flows = 4,200,000 Time period of dividend = 3 years Treasury Bill yield = 2%…

Q: Which of the following is NOT the role of Ministry of Finance under IFSA 2013 and FSA 2013?…

A: The Ministry of finance is very important of government department and has much bigger role in…

Q: Please answer the following, based on the information provided for the firm ABC: the company…

A: Current Selling price is $980 Par Value of Bond is $1000 Coupon rate is 6% To Find: Pre tax Cost of…

Q: invest?

A: Investment refers to the process of acquiring an asset for building wealth and for saving the…

Q: Description 4. Using the data for Clorox Company (NYSE: CLX), presented below: Fiscal Year Sales…

A: Annual growth rate It is calculated as shown below. Annual growth rate=Current year valuePreviuos…

Q: A4) Finance What is a pair of options that will create a payoff profile for a long straddle?

A: Solution:- Payoff means the cash flow on maturity.

Q: Define credit risk and its implications for banks and other financial institutions as well as ways…

A: Credit Risk means risk which is faced by the Banks and Financial Institutions who lend money to…

Q: A budget deficit would result when a person's or family's Actual expenses are less than planned…

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…

Q: Insteadofbuyingamotorcyclethisyear,youdecidedtopostponeitforanother3yearsanddeposityour money worth…

A: Interest is an additional amount which is earned on deposited amount for the period. it is received…

Q: For an effective interest rate of 16% per annum, what is the equivalent nominal annual rate…

A: The periodic interest rate is multiplied by the number of periods in a year to create the nominal…

Q: Year Project A Project B Project C Project D 1 -10000 -10000 -10000 -10000 2 4000 4000 4000 3 4000…

A: Internal rate of return is the discount rate at which the present value of the future cash flow and…

Q: Classify the following statement as true or faise Justry the answer. The justification is more…

A: Here, Borrowed amount = 450 euros If the project is successful, cashflows = 1,000 euros If the…

Q: A close family friend has approached you to help her determine which of the two common stocks she…

A: Expected return is that which was based on past track record of company with the help of expected…

Q: Question 26 From our discussion of interest rate frameworks, we can guess that the demand for…

A:

Q: Ball Corporation (BLL) $87.23 -$1.10 (-1.25%) Previous Close $88.33 Open $86.90 Bid $87.37 x 800 Ask…

A:

Q: If you will live for X years after retirement and the estimated return for your investment portfolio…

A: Note: The question provides a choice of two retirement plans: Fidelity. 401(k) plan” or “Hines…

Q: The annual maintenance cost of a generator is P1000 after 1 year and it is estimated to increase 10%…

A: Discounting is a technique which is used to compute the present value (PV) of future amount by…

Q: MIRR unequal lives. Singing Fish Fine Foods has $1,820,000 for capital investments this year and is…

A: Here, To Find: MIRR =? Adjusted MIRR =?

Q: An individual intends to invest $3,000 monthly for two years in a financial asset that pays the…

A: Here, Monthly investment = $3,000 Time period = 2 years Nominal Interest rate = 9% per year…

Q: A $3,000,000,000 bond with coupon j2 = 15% maturing in 12 years can be redeemed after 4 years at 108…

A: The price of a bond: The maximum price that can be paid to get a minimum return is the total present…

Q: A "risk-premium" is the difference between ___________________________ . A) the variance of a…

A: Solution:- Capital Asset Pricing Model (CAPM) is the equity model to determine the expected rate of…

Q: 4. Find the compound amount and interest on P360,000 for 8 years and 6 months at 10% compounded…

A: Under Compounded Interest Interest is on Principal + Interest amount both while in simple interest…

Q: The dividend growth model CANNOT be used in which of the following? a. When dividends are expected…

A: The dividend discount model is used for the valuation of company stock based on the dividends it…

Q: The drawee of a check is not liable on the instrument until the check is _______.   a.) Accepted.…

A: Drawee is the person who is directed to pay. In case of a Cheque Bank will always be the Payee.

Q: Which of the following is NOT the main function of Ministry of Finance (MoF)?   Select one: To…

A: The main functions of Ministry of Finance (MoF) will include formulating policies, propose bills,…

Q: ● PENDING Ⓒ Tuesday, Jul 05, 2022

A: The following information has been provided in the question: Cost of bond =PHP 2000 Interest rate=…

Q: hese problems focus on percent.  The related text information is chapter 7 section 7-1. Examples…

A: Given,       Original selling price = $ 23     Always Given discount =  10%     Additional…