Question
all the best. they are a bit challenging. correct answers Attach ten references, and exact quote of the cited reference A bill of exchange is
all the best. they are a bit challenging. correct answers
Attach ten references, and exact quote of the cited reference
A bill of exchange is unconditional writing from one person to another. State five essential elements of a valid bill of exchange.
10. In relation to negotiable instruments highlight various ways in which a bill may be discharged.
11. Presentation of a bill of exchange is governed by various rules. In relation to the above statement discuss the rules that govern the presentation of a bill of exchange.
SECTION 2
1. Define each of the following terms:
- Call option
- Put option
- Strike price or exercise price
- Expiration date
- Exercise value
- Option price
- Time value
- Writing an option
- Covered option
- Naked option
- In-the-money call
- Out-of-the-money call
- LEAPS
2. The current price of a stock is $50. In 1 year, the price will be either $65 or $35. The annual risk-free rate is 10%. Find the price of a call option on the stock that has an exercise price of $55 and that expires in 1 year. (Hint: Use daily compounding.)
3. The exercise price on one of Chrisardan Company's call options is $20, its exercise value is $27, and its time value is $8. What are the option's market value and the price of the stock?
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