subject
Business, 03.05.2021 17:20 Esme1995

Suppose that call options on ExxonMobil stock with time to expiration 3 months and strike price $90 are selling at an implied volatility of 30%. ExxonMobil stock currently is $90 per share, and the risk-free rate is 4%. 1) If you believe the true volatility of the stock is 32%, how can you trade on your belief without taking on exposure to the performance of ExxonMobil

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 17:30
Google started as one of many internet search engines, amazon started as an online book seller, and ebay began as a site where people could sell used personal items in auctions. these firms have grown to be so large and dominant that they are facing antitrust scrutiny from competition regulators in the us and elsewhere. did these online giants grow by fairly beating competition, or did they use unfair advantages? are there any clouds on the horizon for these firms -- could they face diseconomies of scale or diseconomies of scope as they continue to grow? if so, what factors may limit their continued growth?
Answers: 1
question
Business, 22.06.2019 19:50
The new york company produces high quality chairs. variable manufacturing overhead is applied at a standard rate of $12 per machine hour. each chair requires a standard quantity of six machine hours. production for the month totaled 4,000 units. calculate: the standard cost per unit for variable overhead. select one: a. $130,000 b. $192,000 c. $90,000 d. $100,000
Answers: 2
question
Business, 22.06.2019 22:20
Which of the following best explains why the demand for housing is more flexible than the supply? a. new housing developments are being constructed all the time. b. low interest rates for mortgages make buying a home very affordable. c. the increasing population always drives demand upwards. d. people can move more easily than producers can build new homes.
Answers: 1
question
Business, 22.06.2019 22:40
Colorado rocky cookie company offers credit terms to its customers. at the end of 2018, accounts receivable totaled $715,000. the allowance method is used to account for uncollectible accounts. the allowance for uncollectible accounts had a credit balance of $50,000 at the beginning of 2018 and $30,000 in receivables were written off during the year as uncollectible. also, $3,000 in cash was received in december from a customer whose account previously had been written off. the company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year. 1. prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.2. how would accounts receivable be shown in the 2018 year-end balance sheet?
Answers: 1
You know the right answer?
Suppose that call options on ExxonMobil stock with time to expiration 3 months and strike price $90...
Questions
question
Computers and Technology, 08.07.2019 00:30