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Social Science Clinic => Business => Finance => Topic started by: ishan on Jul 9, 2019

Title: In this equation, what does the term ____ represent?
Post by: ishan on Jul 9, 2019

Consider the following equation:
C = P + S - PV(K) - PV(Div)

In this equation, what does the term S represent?
◦ the value of the call option
◦ the strike price of the option
◦ the payoff of a zero-coupon bond
◦ the stock's current price

Title: Consider the following equation:C = P + S - PV(K) - PV(Div)In this equation, what does the term S represent?
Post by: leahchrapun on Jul 9, 2019

the stock's current price

Title: Consider the following equation:C = P + S - PV(K) - PV(Div)In this equation, what does the term S represent?
Post by: ishan on Jul 9, 2019

Thanks

Title: Consider the following equation:C = P + S - PV(K) - PV(Div)In this equation, what does the term S represent?
Post by: leahchrapun on Jul 9, 2019

Welcome :)

Title: Consider the following equation:C = P + S - PV(K) - PV(Div)In this equation, what does the term C represent?
Post by: bobbie on Jul 9, 2019

Consider the following equation:
C = P + S - PV(K) - PV(Div)

In this equation, what does the term C represent?
◦ the strike price of the option
◦ the value of the call option
◦ the payoff of a zero-coupon bond
◦ the stocks current price

Title: Consider the following equation:C = P + S - PV(K) - PV(Div)In this equation, what does the term C represent?
Post by: 234sdffa on Jul 9, 2019

the value of the call option

Title: Consider the following equation:C = P + S - PV(K) - PV(Div)In this equation, what does the term K represent?
Post by: Medesa on Jul 9, 2019

Consider the following equation:
C = P + S - PV(K) - PV(Div)

In this equation, what does the term K represent?
◦ the stocks current price
◦ the price of a zero-coupon bond
◦ the value of the call option
◦ the strike price of the option

Title: Consider the following equation:C = P + S - PV(K) - PV(Div)In this equation, what does the term K represent?
Post by: sylvia on Jul 9, 2019

the strike price of the option

Title: Consider the following equation:C = P + S - PV(K) - PV(Div)In this equation, what does the term K represent?
Post by: Medesa on Jul 9, 2019

Thank you!

Title: Consider the following equation:C = P + S - PV(K) - PV(Div)In this equation, what does the term K represent?
Post by: sylvia on Jul 9, 2019

Always glad to help...