Explain definition of put–call parity described by Reinach
Explain the definition of put–call parity described by Reinach.
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In 1961 Reinach describes ‘conversion,’ that is what we called as put–call parity, he also knows that this does not essentially apply for American options.
If the model could not even find bond prices right, how could this hope to accurately value bond options?
Discuss how management’s discretion in applying accounting rules can mislead investors. Provide three examples and how the discretion can distort results?
The dividend is the part of the net income which the company distributes to shareholders. When the dividend shows real money, the net income is also real money. Is it true?
A court assigned to me (as an auditor and economist) a valuation of a market butcher’s. The butcher’s did not give any simple income statements or any valuable information that I could use in my valuation. This is a small business with just two workers, th
Assume that the risk-free rate is 1% and the expected market return is 9%. You are considering purchasing Super Soft stock, which currently sells for $100 a share and will pay its next (annual) dividend of $1.00 exactly one year from today. Super Soft is considered to
Explain useful properties of low-discrepancy sequence theory or quasi random number theory.
Is the difference for the value creation in a company among the market value of the shares (capitalization) and their book value a good measure since its foundation?
We were assigned a valuation of a pharmaceutical laboratory’ shares. Which valuation method is further convenient?
Explain the branching structure of the binomial model.
FedEx would like to acquire 300 vans for its business. It can buy each van for $35,000, depreciate it completely over 5 years, and then sell it for $10,000. The tax rate of FedEx is 30%, and its cost of debt is 10%. Avis Fleet Rental will lease these vans to FedEx for
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