Who explained put–call parity
Who explained put–call parity?
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In 1956 Kruizenga and 1961 Reinach explained put–call parity.
Stock Market: To trade company shares (or stock) and derivatives, a stock market or equity market is public entity where these shares and derivatives are sold at agreed price. These are to be listed on a stock exchange in order to trade publicly.
Who proposed definition and development of low-discrepancy sequence theory or quasi random number theory?
Box Spread: This is another strategy which seeks to exploit the arbitrage opportunities which are available in the market. In case that the options are correctly priced, this strategy would earn only the risk free rate. However, due to existence of im
The market risk premium is the difference between the historical return on the stock market and the return on bonds. But how many years does “historical” imply? Shall we use the arithmetic mean or the geometric one?
Is this true that the cost of its equity is zero, if a company does not distribute dividends?
Which capital structure must we consider when estimating the WACC for a subsidiary valuation: the one which is reasonable according to the risk of the subsidiary’s business that the average of the company or the one the subsidiary as “tolerates/per
Is the Free Cash Flow (FCF) the sum of the debt cash flow and the equity cash flow?
What did ‘better’ mean specified with Markowitz questioned regarding portfolio selection?
PV of dividends: Cortez, Inc., is expecting to pay out a dividend of $2.50 next year. After that it expects its dividend to grow at 7 percent for the next four years. What is the present value of dividends over the next five-year period if the required rate of return is 10 percent?
Stanley invested in a municipal bond which promised an annual yield of 6.7 %. The bond pays coupons twice a year. What is the effective annual yield (abbreviated as EAY) on this investment? (1) 13.4% (2) 6.81% (3) 6.70% (4) None of the above
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