Financial Math Answers

Iron Man Merchandise sells a set of stainless steel trays to Dora’s Cookie Shop with a list price of ₱2,500 and qualifies for a 30% ,compute for the NET PRICE. . using (a) discount method  and (b) complement method.

You purchase a ℎ1, 000 coupon bond. The coupon rate on the bond is 4%. What is the coupon payment?

Using any One of the following packages .Mathematica,

MATLAB ,Microsoft excel and R design and construct a

computer program me that solve the problem given below.

A listed company on the ZSE has the stock price six

months from expiration of

an option as $95, risk free interest rate is 4% per annum

and an exercise price of $90. The volatility is 30% per

annum. Calculate the price of the European put option

using the Black-Scholes option pricing model. Using the

put-call parity relationship, calculate the call price.

Sketch the call and put payoff graphs defined in the

question.

Using any One of the following packages .Mathematica,

MATLAB ,Microsoft excel and R design and construct a

computer program me that solve the problem given below.

A listed company on the ZSE has the stock price six

months from expiration of

an option as $95, risk free interest rate is 4% per annum

and an exercise price of $90. The volatility is 30% per

annum. Calculate the price of the European put option

using the Black-Scholes option pricing model. Using the

put-call parity relationship, calculate the call price.

Sketch the call and put payoff graphs defined in the

question.

Using any One of the following packages .Mathematica,

MATLAB ,Microsoft excel and R design and construct a

computer program me that solve the problem given below.

A listed company on the ZSE has the stock price six

months from expiration of

an option as $95, risk free interest rate is 4% per annum

and an exercise price of $90. The volatility is 30% per

annum. Calculate the price of the European put option

using the Black-Scholes option pricing model. Using the

put-call parity relationship, calculate the call price.

Sketch the call and put payoff graphs defined in the

question.

Compute the value after three years of $1, 000 invested in a 4-

year bond with $32 annual coupons and $100 face value if the

rates in consecutive years are as follows:

Scenario 1: 12%, 11%, 12%, 12%;

Scenario 2: 12%, 13%, 12%, 12%;

Scenario3: 12%, 10%, 14%,11%.

Design a spreadsheet and experiment with various interest rates.

An investment with an initial outlay of R500 000 generates five successive annual cash inflows of R75 000, 

R190 000, R40 000, R150 000 and R180 000 respectively. The cost of capital K is 10% per annum.

The internal rate of return (IRR) is

Curwin has R3003650 saved for his retirement. His account earns 8.4% interest per annum, compounded half yearly. HOW MUCH WILL HE BE ABLE TO WITHDRAW AT THE END OF EACH SIX MONTH PERIOD , IF HE WANTS TO BE ABLE TO TAKE WITHDRAWALS FOR 15YEARS ? THE FIRST WITHDRAWAL START AFTER 6 MONTHS

Question (1) [5 marks] Armando is selling rulers. He bought rulers at 0.20c each, and sold them (except for broken ones) at N$1.10 each to make a profit of N$306.50. The number of broken rulers is 38. How many rulers did he buy?