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can you answer the question 5 the part B and C thanks b) A company requires funding for a new factory. The company only has

can you answer the question 5 the part B and C thanks

b) A company requires funding for a new factory. The company only has access to a debt facility that offers floating rate loans. However, giving that the company is concerned about interest rates potentially rising in the future, it prefers a fixed rate loan. provide advice to the company on its options.

c) John bought an option contract on BHP shares with an exercise price of $50 and an expiry date in one month. The market price for BHP shares today is $47.81. the call price is trading at $0.35.

i. Calculate the break - even amount for the call position and draw a fully labelled diagram for both buyer of the position and seller of the potion.

ii. At what minimum share price will the option buyer exercise the option on the expiration date? Provide reasoning in your answer.

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