Given the following information on the available options, you need to hedge the underlying commodity as a producer with a zero-cost collar. A zero-cost collar means buying a put option and writing a call option that has the closest premium to the put. The underlying price is $630. You choose a one-year put option with $620 strike. Jan-21-64 Expire Strike Call Put
PV
630 Jan-21-65 500 158.4511 25.58539
630 Jan-21-65 530 138.3005 35.22183
630 Jan-21-65 560 120.0379 46.75599
630 Jan-21-65 590 103.6494 60.17585
630 Jan-21-65 620 89.07566 75.42293
630 Jan-21-65 650 76.22209 92.40239
630 Jan-21-65 680 64.96979 110.9945
630 Jan-21-65 710 55.18534 131.0646
630 Jan-21-65 740 46.72803 152.4702
630 Jan-21-65 770 39.45681 175.0686
What is the strike of the call option that you need to write to create a nearly zero-cost collar?
a. 650
b. 680
c. 710
d. 740

What do economists mean when they use the latin expression ceteris paribus?

P11.2a (lo 2, 4) fechter corporation had the following stockholders’ equity accounts on january 1, 2020: common stock ($5 par) $500,000, paid-in capital in excess of par—common stock $200,000, and retained earnings $100,000. in 2020, the company had the following treasury stock transactions. journalize and post treasury stock transactions, and prepare stockholders’ equity section. mar. 1 purchased 5,000 shares at $8 per share. june 1 sold 1,000 shares at $12 per share. sept. 1 sold 2,000 shares at $10 per share. dec. 1 sold 1,000 shares at $7 per share. fechter corporation uses the cost method of accounting for treasury stock. in 2020, the company reported net income of $30,000. instructions a. journalize the treasury stock transactions, and prepare the closing entry at december 31, 2020, for net income. b. open accounts for (1) paid-in capital from treasury stock, (2) treasury stock, and (3) retained earnings. (post to t-accounts.) c. prepare the stockholders’ equity section for fechter corporation at december 31, 2020.

Slow ride corp. is evaluating a project with the following cash flows: year cash flow 0 –$12,000 1 5,800 2 6,500 3 6,200 4 5,100 5 –4,300 the company uses a 11 percent discount rate and an 8 percent reinvestment rate on all of its projects. calculate the mirr of the project using all three methods using these interest rates.