Question: I need an explain for these calculation Problem 2-20 Consider the three stocks in the following table Pt represents price at time t, and Qt

 I need an explain for these calculation Problem 2-20 Consider thethree stocks in the following table Pt represents price at time t,and Qt represents shares outstanding at time L Stock C splits two-for-onein the last period Po 00 P1 01 P2 02 A 97

I need an explain for these calculation

100 102 100 102 100 B 57 200 52 200 52 200c 114 200 124 200 62 400 Calculate the rst-period rates ofreturn on the following indexes of the three stocks: (Do not roundintermediate calculations. Round your answers to 2 decimal places.) a. A market

Problem 2-20 Consider the three stocks in the following table Pt represents price at time t, and Qt represents shares outstanding at time L Stock C splits two-for-one in the last period Po 00 P1 01 P2 02 A 97 100 102 100 102 100 B 57 200 52 200 52 200 c 114 200 124 200 62 400 Calculate the rst-period rates of return on the following indexes of the three stocks: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. A market value-weighted indext Rate of return % b. An equally weighted index. Rate of return % FIGURE 2.9 Prices at close July 7, 2011 Apple (AAPL) Underlying stock price: 357.20 Stock options on Apple Call Put Source: From The Wall Street Expiration Strike Last Volume Open Interest Last Volume Open Interest Journal Online, July 8, 2011. Jul 350 9.00 32874 46311 1.73 15148 9711 Reprinted by permission of Aug 350 16.50 5883 24232 Dow Jones & Company, Inc. 8.95 4457 6421 2011 Dow Jones & Com- Oct 350 24.90 751 8526 16.70 138 1732 pany, Inc. All Rights Reserved Jan 350 33.95 859 30028 25.35 316 8067 Worldwide. Jul 355 5.60 43911 40395 0.90 18762 1061 Aug 355 13.70 4624 8952 11.10 2859 3146 Oct 355 21.98 760 2146 18.85 176 938 Jan 355 31.27 383 2842 27.45 175 1279 Jul 360 3.15 43485 50184 3.50 3811 114 Aug 360 11.15 8692 43183 13.55 1864 1176 Oct 360 19.41 693 4669 21.34 134 868 Jan 360 28.50 1018 14117 29.98 305 1564Problem 2-26 Refer to the stock options on Apple in the Figure 2.9. Suppose you buy a January expiration call option with exercise price $355. a-1. If the stock price in January is $382, will you exercise your call? Yes O No a-2. What is the net profit/loss on your position? (Input the amount as a positive value.) (Click to select) a-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % b-1. Would you exercise the call if you had bought the January call with the exercise price $350? Yes O No b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) (Click to select) ! $ b-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % c-1. What if you had bought a January put with an exercise price of $355 instead? Would you exercise the put at a stock price of $355? Yes O No c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return $ %Problem 219 Consider the three stocks in the following table. P, represents price at time t, and 0, represents shares outstanding at time 1. Stock C splits two-forone in the last period. Po 00 P1 01 P2 02 A 85 1 00 90 1 00 90 100 B 45 200 40 200 40 200 C 90 200 100 200 50 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the rst period (t = 0 to t = 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return 4.55 % b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor

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