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Help! Please answer within 1 Hour. Thanks You sold (wrote) a January American put option on Bell stock with an exercise price of 50. Which
Help! Please answer within 1 Hour. Thanks
You sold (wrote) a January American put option on Bell stock with an exercise price of 50. Which of the following statements is true? You are obligate to buy Bell shares at $50 when the option expires in January, regardless of the stock' s market price. You are obligated to buy Bell shares for $50 at any time prior to the expiration in January, if the owner of the option chooses to exercise. You are obligated to sell Bell shares at $50 when the option expires in January, regardless of the stock's market price. You have the right to buy Bell shares for $50 at any time prior to the option expiration in January regardless of the stock's market price. You have the right to sell Bell shares for $50 at any time prior to the option expiration m January regardless of the stock's market price. ELF Toy Company is expected to pay a dividend of $3.00 in the upcoming year. Dividends are expected to at a rate of 8% per year. The risk free rate of return is 5% and the market risk premium is 12%. The stock has a beta of 0.75. What is the intrinsic value of a share of ELF stock? $50.00 $27.27 $75.00 $133.33 $54.00Step by Step Solution
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