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##### Finance Problems

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Question;Problem 2-28;Both a;call and a put currently are traded on stock XYZ, both have strike prices of;$50 and maturities of six months.;Required;(a);What;will be the profit to an investor who buys the call for $4 in the following;scenarios for stock prices in six months?(a)$40,(b)$45,(c)$50,(d)$55,(e)$60.(Negative amounts should be indicated by a minus;sign. Omit the "$" sign in your response.);Stock price;Profit;a.;$;40;$;b.;$;45;$;c.;$;50;$;d.;$;55;$;e.;$;60;$;(b);What;will be the profit in each scenario to an investor who buys the put for $6 in;the following scenarios for stock prices in six months?(a)$40,(b)$45,(c)$50,(d)$55,(e)$60.(Negative amounts;should be indicated by a minus sign. Omit the "$" sign in your;response.);Stock price;Profit;a.;$;40;$;b.;$;45;$;c.;$;50;$;d.;$;55;$;e.;$;60;$;problem 2-24;Look at the futures listings;for corn inFigure 2.11.;http://lectures.mhhe.com/connect/007338240X/Ch 02-Problems/figure_2-11.jpg;Required;(a);Suppose you buy one contract;for December 2009 delivery. If the contract closes in December at a price of;$5.25 per bushel, what will be your profit or loss?(Round your answer to 2 decimal places. Omit the "$" sign in;your response.);(Click to select);Profit;Loss;$;(b);How many December 2009 maturity;contracts are outstanding? How many bushels of corn do they represent?;Outstanding;contracts;Bushels;of corn;Problem 2-19;Consider the three stocks in;the following table.Ptrepresents price at timet, andQtrepresents shares outstanding;at timet. Stock C splits two-for-one in;the last period.;P0;Q0;P1;Q1;P2;Q2;A;85;260;90;260;90;260;B;55;130;50;130;50;130;C;200;250;210;250;105;500;Required;Calculate the first period;rates of return on the following indexes of the three stocks (t= 0 tot= 1)(Negative amounts should be indicated by a minus sign.Round your answers to;2 decimal places. Omit the "%" sign in your response.);(a);A;market value-weighted index.;Rate;of return;%;(b);An;equally weighted index.;Rate;of return;%

Paper#47743 | Written in 18-Jul-2015

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