Question

a. Calculate the intrinsic value for each of the following call options. (Round your answers to 2 decimal places.) Time to Expiration (months) Intrinsic Value 2.82 Company RJay RJay Sell-Mart Xenon ou NP Strike 60 70 60 7.50 So 62.82 62.66 69.80 6.58 9.80 b. Now assume that the effective annual interest rate is 6.58%, which corresponds to a monthly interest rate of 0.53%. Calculate the present value of each call option's exercise price and the adjusted intrinsic value for each call option. (Round your answers to 2 decimal places.) Time to Expiration (months) Adjusted Intrinsic Value Strike So PV (X) 60 Company RJay RJay Sell-Mart Xenon от мн 70 60 7.50 62.82 62.66 69.80 6.58

Answer 1

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NPV, IRR, PBP,OCF, INDEX - Microsoft Excel (Product Activation Failed) Page Layout Formulas File Home Insert Data Review View Add-Ins Z AutoSum- Cut AC Wrap Text Calibri 11 General ECopy Fill Merge & Center Insert Delete Format Paste $ % , Conditional Format Cell Sort & Find & Filter Select BIU Format Painter Clear Formatting as Table Styles Alignment Clipboard Font Number Styles Cells Editing fox DC102 DM DB DC DD DE DF DG DH DI DJ DK DL DN DO 97 98 INTRINSIC VALUE = CURRENT PRICE - EXERCISE PRICE 99 100 EXERCISE CURRENT INTRINSIC 101 COMPANY PRICE PRICE VALUE 102 RJAY 62.82 60 2.82 103 RJAY 62.66 70 0 104 SELL-MART 69.8 60 9.8 105 XENON 6.58 7.5 0 106 107 MONHTLY INTEREST RATE 0.53% 108 INTRINSIC 109 CURRENT EXERCISE NOTE PRICE (X) PV(X) COMPANY PV(X) 110 PRICE VALUE 60/(1+0.53%)^1) 111 RJAY 62.82 60 59.68 3.14 70/(1+0.53%)^2) 112 RJAY 62.66 70 69.26 0.00 60/(1+0.53%)A5) 113 SELL-MART 69.8 60 58.43 11.37 7.5/(1+0.53%)^6) ΧΕΝΟN 114 6.58 7.5 7.27 0.00 115 ARM, MSI,confidence INDEX GM HPR AM PREF AND DIV POLICY OCF CASH FLOW STATW TAX GROWTH SUST FCF CURRENCYLOAN CROSS OVER HEDGING MONEY MARKET erences 130% W 08:43 ENG 21-11-2019