Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) BOOK RATIO Jaster Jets has $10 billion in total assets. Its balance sheet illustrates $1 billion in present liabilities, $3 billion in long-term debt and $6 billion in common equity. It has 800 million shares of common stock outstanding, and its stock price is= $32 per share. Determine Jaster’s market /book ratio.

You may suppose (for simplicity) that both put and call option contracts for gold are for the quantity of one ounce of gold. Both put and call options have same maturity. Premium for call is $2/ounce and premium for put is $1/ounce. Both options have the strike price of= $1100/ounce.

2)i) The investor prepares (or sells) one put option contract. If price of gold in spot market at maturity date of option is $1095, compute her profit/loss?

a) A profit of $5.
b) A profit of $6.
c) A loss of $5.
d) A loss of $4.

3)ii) The investor purchases one call option contract. If price of gold in spot market at maturity date of the option is $1104, compute is her profit/loss?

a) A profit of $4.
b) A profit of $2.
c) A loss of $4.
d) A loss of $6.

Additional Requirements
Min Pages: 1

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914254

Have any Question? 


Related Questions in Basic Finance

Primary task responsenbspif a company grows too fast it can

Primary Task Response:  If a company grows too fast, it can find itself without access to the resources it needs to meet its obligations. If it grows too slowly, it may find itself missing strategic as well as tactical o ...

You have to make a balloon payment on your house five years

You have to make a balloon payment on your house five years from now of $15,000. If money can earn an average of 6 percent a year for the five-year period, what factor will you use to determine what to deposit now?

Budget analysis needed asapi need a budget analysis

Budget analysis needed ASAP I need a budget analysis completed. I will provide the template and previous assignments needed to complete this project. I am on a time crunch and need this done ASAP. Using the workbooks and ...

Why are the up and down parameters adjusted when the number

Why are the up and down parameters adjusted when the number of periods is extended? Recall that in introducing the binomial model, we illustrated one- and two-period examples, but we did not adjust the parameters. What i ...

1 what are derivatives2 what is the difference between

1. What are derivatives? 2. What is the difference between hedging and speculating? 3. Why might a corn farmer want to hedge against volatile corn prices? 4. Would derivatives markets be better off if the only people buy ...

1 how is performance management at dmg world media

1. How is performance management at dmg world media different from traditional performance management systems at other companies? 2. What was the impetus for developing a different performance management system at dmg wo ...

List the potential costs associated with financial distress

List the potential costs associated with financial distress ? List the potential direct and indirect costs associated with bankruptcy ? Regarding financial slack: a. What is it? b. How is slack created? c. Why do compani ...

1 what are the risks of global investment2 how can a

1. What are the risks of global investment? 2. How can a derivative security be used to hedge portfolio risk?

The scientific method can be described as a circle or a

The scientific method can be described as a circle or a spiral of steps that leads from an initial observation, to a hypothesis, to new observations, to a new hypothesis. For each of the following observations: a. State ...

If the calculated value of f is found to be significant for

If the calculated value of F is found to be significant for the main effect of an independent variable with more than two levels, what tests does the researcher then conduct? Why are such tests not necessary if the indep ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen