Formula for put call parity?

Q: luti

A: Present value is also known as a present discounted value, in which the future value of cash inflows…

Q: The NPV of the replacement is $        ?

A: Net present value is the difference of discounted cash inflows and outflows.

Q: Explain the call-put parity relation and how it is justified?

A: call-put parity relation 1. It shows the prices of calls and puts , consistency of underlying…

Q: In words, what is put-call parity?

A: Put-Call Parity It is a fundamental that shows the relation of option price i.e the European call…

Q: Explain Matching Principles?

A: Matching concept is an accounting principle which explains the need to match revenue with the…

Q: Explain Oligopoly, and its features.

A: Given, Explain Oligopoly, and its features.

Q: Define the term Continuous Compounding?

A: Continuous compounding is as far as possible which accumulating funds can surpass in the event that…

Q: Explain noncumulative pari passu distribution?

A: Pari passu refers to equal footing in Latin. It is the situation where all the stakeholders of the…

Q: Compare static theory and pecking order theory.

A: Static trade-off theory is based on the works of Modigliani and Miller. It initially stated that the…

Q: Briefly explain on Salam and Parallel Salam.

A: Salam and Parallel Salam are modes of Islamic financing which are useful for traders and small…

Q: Write the two types of compounding situations?

A: Interest is characterized as the getting cash cost, as on account of premium charged on equalization…

Q: Explain PV

A: Time value of money is one of the most fundamental and basic concepts of investing. The phrase “Time…

Q: Realization Test Principle/Theory.

A: Accounting is based on some principles, and to maintain uniformity, everyone must follow accounting…

Q: Explain put–call parity relationship

A: Put-Call parity is the concept that defines the relationship between price of European call option…

Q: Explain Concept Syndications?

A: Syndication is a process by which small lenders come together and they lend the money to a big…

Q: What is a limit order?

A: Limit order It is such an order to buy or trade a security at or superior to a predefined cost. The…

Q: Define Matching principle

A: Introduction: The matching principle that needs a corporation to match expenditures with connected…

Q: Explain rebalance

A: Rebalancing is the strategy for realigning portfolio weightings. Rebalancing incorporates buying or…

Q: What is modified breakeven analysis?

A: Break even analysis refers to the financial computation that weights the new business cost, product…

Q: Explain the put call parity model. What are the advatages and disavantages of it?

A: Put-call parity characterizes the connection between calls, puts and the underlying assest price or…

Q: Define Volcker rule

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

Q: Algebraic representation o and sta

A: The right anser is d Graphic representation of alternatives and states of nature .

Q: Explain an example of faithful representation.

A:

Q: machine expendit nstallatic ine, but

A: We will evaluate the project for 5 years as per given info and by…

Q: What is multiple IRRs?

A: Multiple IRRs IRR is a discounting rate at which an amount of investment equals PV of the future CF.…

Q: What is alpha transfer?

A: The term ‘Alpha’ refers to the active return on investment. In other words, the excess return from…

Q: Define asymmetric hedge

A: A strategy that helps to reduce the loss which occurs from the movement of the asset's price is term…

Q: Explain partitioning the IRR?

A: IRR partition tool is an important tool in finance. This tool is a very suitable if one wants to…

Q: If you wanted to evaluate a firm’s DSO, with what could you compare it?

A: DSO is the number of days that firms take to convert their account receivables into cash.

Q: What is view integration?

A: View Integration:  Single model which is created for integrating multiple REA diagrams (which were…

Q: write down value method

A: Rate of Depreciation (r) = 1 – (S/C]^1/n Where, S = Scrap value at the end of useful life, C = Cost…

Q: What is the underlying cause of ranking conflictsbetween NPV and IRR?

A: Net Present Value considers the time value of money that discounts the future cash flows to the…

Q: Explain proxy fight

A: A proxy fight situation arises when a group of shareholders are not satisfied with the senior…

Q: Define Top-down analysis

A: Introduction: Analyst is the person who gathers the data after they interpret and validate the data…

Q: Define the term precision.

A: Introduction: Precision is the amount of information provided by a number in terms of its digits; it…

Q: Compare the Mutually Exclusive Alternatives, based on IRR?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: How can thepayback method be useful?

A: Meaning:   The payback period is the time required to earn back the amount invested in a…

Q: Compute the thed Be

A: * As per Bartleby policy, when multiple different questions are asked then answer first only.…

Q: Define cardinality.

A: Cardinality: Cardinality refers to number of possible links of one table with another table.…

Q: What is put–call parity?

A: Conditions where two or more things are equal are known as parity. It refers to two securities…

Q: Define consol

A: consol is a debt instrument.

Q: Define Profi t margin

A: financial ratios are created with the use of numerical values taken from the financial statements.

Q: Maslow hierarchy of need theory

A: Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model of…