ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.5 : In an American style option for share market, 2 persons - A and B agree to the following : B is required to sell 100 shares of IBMS to A for $85 per share anytime that A wants in the next 8 months. A will pay B $2 per share up front, non-refundable for this option. IBMS involves in petrochemical processing. IBMS stock is currently selling for $80 per share. (a) If A did not buy the share of IBMS from B after 8 months, how much will B earn? (b) If the share of IBMS goes up to $100 / share in 6 months later : (i) how much should A pay B for 100 shares according to their optional agreement? (ii) how much will A earn from 100 shares purchased from B when all the 100 shares are sold to the open market? (iii) how much net profit will A earn for selling 100 shares to the open market?



ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.5 : In an American style option for share market, ..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.5 : (a) Non-refundable payment = $2 / share x 100 shares = $200. (b) (i) Payment of A to B = $85 / share x 100 shares = $8500. (ii) Payment of open market to A = $100 / share x 100 shares = $10000. (iii) Net profit = answer b (ii) - answer b (i) - answer a = $10000 - $8500 - $200 = $1300. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Chemical Engineering Interview Questions

wt is inhand salary in hpcl as a officer in research and development?????

0 Answers  


Define "good" cooling tower water?

0 Answers  


MASS TRANSFER - EXAMPLE 4.2 : In a non-dilute absorber, graphical method is used to represent the process. In an X - Y coordinate system, X-axis represents mole of carbon dioxide / mole of water and Y axis represents mole of carbon dioxide / mole of nitrogen. The inlet gas stream consists of 8 mol % of carbon dioxide in nitrogen. (a) Find the S / G minimum as a slope that goes through the point (0, 0.0304) and (0.0000488, 0.086957). (b) Find the actual slope of operating line when it is 1.5 times the S / G minimum! (c) Find the value of x for inlet gas stream when y = 1640 x, y is mole fraction of carbon dioxide in nitrogen.

1 Answers  


in what way biot number is differ from nusselt number?

3 Answers  


what is mean by reflux ratio?

4 Answers  






Why is double the amount of gas collected in one of the test tubes in electrolysis of water than th amount collected in the other? Name this gas?

0 Answers  


ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.33 : An engineering corporation that produces a type of healthy food has A number of shares of $B preferred stock and C number of shares of $H common stock outstanding. In a typical financial year, let the net income obtained = D. The amount retained by the corporation = E. (a) Calculate the amount of money distributed to the shareholders if : (i) D > E; (ii) D = E; (iii) D < E. (b) Let preferred dividend = F, common dividend = G, CH > G. Find the values of F and G, in term of A, B, D and / or E when : (i) (D - E) > AB; (ii) (D - E) < AB; (iii) (D - E) = AB.

1 Answers  


i'm a chemical engineer with an aggregate of 80% and i'm going to attend for TCS next week...if i encounter a question like this how i have to answer... WHY YOU CHOOSE SOFTWARE RATHER THAN YOUR CORE COMPANIES?

0 Answers  


Question 54 - There are 2 alternatives of investment. Choice 1 : A trader offers you an investment opportunity where your investment of A$15000 presently will be A$18000 after 4 years. Choice 2 : A bank offers you 5 % annual return for your initial investment of A$15000. Question a : What is the equivalent bank payment after 4 years? Question b : By using the concept of equivalence in engineering economy, which is the better choice, betwen 1 and 2, that will be more profitable after 4 years?

1 Answers  


We are having proplem with the persperation smell in ETT/ECHO room in our cardiac hospital.The 2 Ton of AC is not conditioning the environment. We have to use exhaust fan to through out of the room bad air. Could anyone suggest how to coup with this effectively using chemical engineering. Any permanent solution to neutralise the bad smell.The Air freshners are not doing enough instead making a bad odour.

1 Answers  


What are the assumptions made on conservation equation?

0 Answers  


What are some guidelines for designing for liquid and gas velocities in process plant piping?

0 Answers  


Categories
  • Civil Engineering Interview Questions Civil Engineering (5085)
  • Mechanical Engineering Interview Questions Mechanical Engineering (4451)
  • Electrical Engineering Interview Questions Electrical Engineering (16632)
  • Electronics Communications Interview Questions Electronics Communications (3918)
  • Chemical Engineering Interview Questions Chemical Engineering (1095)
  • Aeronautical Engineering Interview Questions Aeronautical Engineering (239)
  • Bio Engineering Interview Questions Bio Engineering (96)
  • Metallurgy Interview Questions Metallurgy (361)
  • Industrial Engineering Interview Questions Industrial Engineering (259)
  • Instrumentation Interview Questions Instrumentation (3014)
  • Automobile Engineering Interview Questions Automobile Engineering (332)
  • Mechatronics Engineering Interview Questions Mechatronics Engineering (97)
  • Marine Engineering Interview Questions Marine Engineering (124)
  • Power Plant Engineering Interview Questions Power Plant Engineering (172)
  • Textile Engineering Interview Questions Textile Engineering (575)
  • Production Engineering Interview Questions Production Engineering (25)
  • Satellite Systems Engineering Interview Questions Satellite Systems Engineering (106)
  • Engineering AllOther Interview Questions Engineering AllOther (1379)