Interested to Buy Any Domain ? << Click Here >> for more details...
ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.5 : In an American style option for share market, 2 persons - A and B agree to the following : B is required to sell 100 shares of IBMS to A for $85 per share anytime that A wants in the next 8 months. A will pay B $2 per share up front, non-refundable for this option. IBMS involves in petrochemical processing. IBMS stock is currently selling for $80 per share. (a) If A did not buy the share of IBMS from B after 8 months, how much will B earn? (b) If the share of IBMS goes up to $100 / share in 6 months later : (i) how much should A pay B for 100 shares according to their optional agreement? (ii) how much will A earn from 100 shares purchased from B when all the 100 shares are sold to the open market? (iii) how much net profit will A earn for selling 100 shares to the open market?
- 1 Answers
- 2133 Views
- I also Faced
- E-Mail Answers
Answer Posted / kangchuentat
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.5 : (a) Non-refundable payment = $2 / share x 100 shares = $200. (b) (i) Payment of A to B = $85 / share x 100 shares = $8500. (ii) Payment of open market to A = $100 / share x 100 shares = $10000. (iii) Net profit = answer b (ii) - answer b (i) - answer a = $10000 - $8500 - $200 = $1300. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
Explain what are some common precipitating agents used to remove metals from aqueous waste streams?
what is the difference between car seal close/open valves and lock close/open valves?
Explain what types of metals are typically removed via chemical precipitation?
What significance the angle of repose holds in the chemical industry, explain?
pls send me model paper of NPCIL for executive trainee. and syllabus of executive trainee 2015.
How can you separate hydrogen peroxide into hydrogen and oxygen?
What are some characteristics of bulk solids that can affect their ability to flow properly?
When using a pumping loop to mix two miscible fluids in a tank, when can the content are considered well mixed?
What is the ignititon temprecher of Diesel,Petrol&Carosion oil.
How can you estimate a gas flow based on two pressure measurements?
We wanted to know how to impart various colors to copper wire by simply dipping them into various chemicals, formulations, etc. This copper wire is to be used by us for our hobby of making various art objects from copper wire.
What are the Major Utility Systems in a Pharma Plant? How are they interrelated?
Define pneumatic conveying?
I want previous year question paper of ONGC for chemical engg.
Explain the factors involved in designing kettle type reboiler?
