Business, 30.07.2021 02:20 Ghhkgu5120

Peter holds a European put on Nike stock with a strike price of $100 that expires in 1 year. Suppose that the price of Nike stock in 1 year is $70 and that Peter will make the exercise decision optimally. Which of the following statements is correct? A. Peter will choose to exercise in 1 year and will receive a payoff in 1 year of $70 from holding the option.
B. Peter will choose to exercise in 1 year and will receive a payoff in 1 year of $30 from holding the option.
C. Peter will choose not to exercise in 1 year and will receive a payoff in 1 year of $30 from holding the option.
D. Peter will choose not to exercise in 1 year and will receive a payoff in 1 year of $0 from holding the option.
E. There is not enough information to determine whether Peter will exercise the put option, or what his payoff will be in 1 year from holding the put option.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 01:30

The strength of the economy depends on the balance pf production and consumption of goods and consumption of goods and services

Answers: 1

Answer

Business, 22.06.2019 14:00

Your dormitory, griffingate, has appointed you central banker of its economy, which deals in the currency of wizcoins. assume that the velocity of wizcoins in griffingate is constant at 10,000 transactions per year. right now, real gdp is 1,000 wizcoins, and there are 2,000 wizcoins in existence.

Answers: 2

Answer

Business, 22.06.2019 16:00

Three pounds of material a are required for each unit produced. the company has a policy of maintaining a stock of material a on hand at the end of each quarter equal to 30% of the next quarter's production needs for material a. a total of 35,000 pounds of material a are on hand to start the year. budgeted purchases of material a for the second quarter would be:

Answers: 1

Answer

Business, 22.06.2019 19:30

Which of the following businesses is most likely to disrupt an existing industry? a. closer connex developed an earphone that receives emails and text messages and converts them to voice messages. the first models had poor reception, but they rapidly improved over time. b. mega technologies reconfigured the components used in its touchscreen tablets to create a new type of wearable device for use in restaurants and other service industries. c. particle inc. developed a teleportation technology that can transport physical materials instantaneously across great distances. d. altrea added advanced camera technology to its premium line of smartphones so that they would take the highest-quality photos of all phones on the market.

Answers: 1

Answer

You know the right answer?

Peter holds a European put on Nike stock with a strike price of $100 that expires in 1 year. Suppose...

Questions