The price of a European put expiring in nine months with a s…

The price of a European put expiring in nine months with a strike price of $135 is $3. The underlying stock price is $142. A dividend of $0.50 is expected in two months and again in five months. The term structure of risk-free interest rates is: 2%, 2.05%, 2.08%, for two-, five-, and nine-month maturities, respectively. Which of the strategies below is an arbitrage if the corresponding call price is $4?

The price of a stock is $21. Consider put and call options (…

The price of a stock is $21. Consider put and call options (European style) on this stock with the same maturity of six months. The put option has a strike of $15 and is quoted at $1.50 per share. The call option has a strike of $25 and is quoted at $2 per share. An investor uses the following strategy: short 200 shares, long 2 call options (each on 100 shares) and short 2 put options (each on 100 shares).   For which of the ranges below of the stock price at maturity will the investor incur a loss?

A short four-month forward contract was negotiated three mon…

A short four-month forward contract was negotiated three months ago with a delivery price of $40. Its current price is $42. The term-structure of risk-free interest rates (with continuous compounding) is flat at  3%. What is the current value of the short forward contract?  

Answer the word problem, make sure to answer both parts of t…

Answer the word problem, make sure to answer both parts of the question   A printing press can print books for a fixed weekly cost of 1758 dollars and a variable cost of 3.5 dollars per book.   A.  Write an equation in slope intercept form modeling the cost of printing x books.   B.  How many books can be printed for a total cost of 6077 dollars.  

The price of a stock is $21. Consider put and call options (…

The price of a stock is $21. Consider put and call options (European style) on this stock with the same maturity of six months. The put option has a strike of $15 and is quoted at $1.50 per share. The call option has a strike of $25 and is quoted at $2 per share. An investor uses the following strategy: short 200 shares, long 2 call options (each on 100 shares) and short 2 put options (each on 100 shares).   For which of the ranges below of the stock price at maturity will the investor incur a loss?

A blood culture yielded an organism with the following react…

A blood culture yielded an organism with the following reactions: TSIA: K/A, gas (+), H2S (+) Citrate: Positive Indole: Negative Lysine: Positive Ornithine: Positive Motility: Positive Phenylalanine: Negative ONPG: Negative Urease: Negative What is the most likely identification of this organism?