Binomial Model Assignment | Homework For You

the stock price is currently $80. The stock price annual up-move factor is 1.15. The risk free rate is 3.9%. Compute the value of a 2 year European call option with an exercise price of $62 using a two-step binomial model. Get Finance homework help today Dr. PeterTOP ACADEMIC WRITER He has decades of experience in the education field and has served in the examination … Continue reading Binomial Model Assignment | Homework For You

Stock Return Assignment | Homework For You

A stock had returns of 16.27 percent, 24.18 percent, −12.29 percent, and 9.62 percent over four of the past five years. The arithmetic average return over the five years was 13.28 percent. What was the stock return for the missing year? 25.76% 15.34% 28.62% 4.04% 22.90%. Get Finance homework help today Dr. PeterTOP ACADEMIC WRITER He has decades of experience in the education field and … Continue reading Stock Return Assignment | Homework For You

Variance-Covariance Matrix Assignment | Homework For You

Stocks:50% of portfolio – Advanced Micro Devices, Inc. (AMD) starting price: 30.9$ Closing price: 29.94$ 50% of portfolio – Canopy Growth Corp (CGC) Starting price: 24.21$ Closing price: 27.31$ Report the variance-covariance matrix (for only 15-20 days of trading) Option 1: You can take estimates of volatilities of individual stocks from Reuters, Bloomberg, Yahoo finance or other sources. If you are not quite sure how … Continue reading Variance-Covariance Matrix Assignment | Homework For You

Equity Multiplier Assignment | Homework For You

[Chapter 3] 1. The equity multiplier is equal to 1 plus the debt-equity ratio. Using an example, prove that this equation is true. 2. What can you learn about a firm by using the Du Pont identity that you cannot determine by just knowing the return on equity? Get Finance homework help today Dr. PeterTOP ACADEMIC WRITER He has decades of experience in the education … Continue reading Equity Multiplier Assignment | Homework For You

Credit Losses Based on Credit Sales Assignment | Homework For You

Credit Losses Based on Credit Sales. Gregg Company uses the allowance method for recording its expected credit losses. It estimates credit losses at three percent of credit sales which were $900,000 during the year. On December 31, the Accounts Receivable balance was Accounts had a credit balance of $12,200 before adjustment. $150,000, and the Allowance for Doubtful a. Prepare the adjusting entry to record the … Continue reading Credit Losses Based on Credit Sales Assignment | Homework For You

Yield on the Repo Assignment | Homework For You

Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $27,950,000, with the promise to buy them back at a price of $28,000,000 a. Calculate the yield on the repo if it has a 6-day maturity. b. Calculate the yield on the repo if it has a 20-day maturity. (For all requirements, … Continue reading Yield on the Repo Assignment | Homework For You

Annual Percentage Rate Assignment | Homework For You

Suppose that a company borrows $20,000 for 1 year at a stated rate of interest of 9%. What is the annual percentage rate (APR) if interest is paid to the lender Annually Semiannually Quarterly.  Get Finance homework help today Dr. PeterTOP ACADEMIC WRITER He has decades of experience in the education field and has served in the examination boards of some of the top Universities … Continue reading Annual Percentage Rate Assignment | Homework For You

Savings Assignment | Homework For You

Suppose you deposited $5014 in a savings account. If you have $5493 in the account after 2 years, what interest rate did you earn on your savings? Answer in percentage rounded to two decimal places. Get Finance homework help today Dr. PeterTOP ACADEMIC WRITER He has decades of experience in the education field and has served in the examination boards of some of the top … Continue reading Savings Assignment | Homework For You

Expected Return of the Market Portfolio Assignment | Homework For You

Suppose you have a market with only two stocks, whose details are given below.   Shares Outstanding Price per share Expected return St. Dev. Of return Stock A 100 $1.50 15% 15% Stock B 150 $2.00 12% 9% Correlation between returns of the stocks is given by ρ = 1/3. a) Find the expected return of the market portfolio.       b) Find the risk of … Continue reading Expected Return of the Market Portfolio Assignment | Homework For You

Value of Interest Rate Assignment | Homework For You

Suppose the federal funds rate is currently 2 percent and the term premium between the federal funds rate and the 1-year rate is equal to 1 percent. Suppose that it is expected that the Federal Open Market Committee (the FOMC) will raise the federal rate by a total of 75 basis points over next year. The increase is expected to be in increments of 25 … Continue reading Value of Interest Rate Assignment | Homework For You