The Existing Spot Rate of the Canadian Dollar Is

question 150

Multiple Choice

The existing spot rate of the Canadian dollar is $.82. The premium on a Canadian dollar call option is $.04. The exercise price is $.81. The option will be exercised on the expiration date if at all. If the spot rate on the expiration date is $.87, the profit as a percent of the initial investment (the premium paid) is:

• A)0 percent.
• B)25 percent.
• C)50 percent.
• D)150 percent.
• E)none of the above

Determine and apply the concept of intrinsic value of a share based on free cash flow and dividend growth models.

Identify and describe different types of corporations, including closely held corporations.

Analyze dividend policies and their impact on company growth and shareholder value.

Understand the calculation of required returns on stock using dividend forecasts and growth models.

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Definitions:

Pay Reduction

A decrease in the amount of money an employee receives as salary or wages, often as a result of economic challenges, performance issues, or restructuring.

Demotion

The act of reducing an employee's rank or position, usually as a result of performance issues or organizational restructuring.

Law Of Contingent Reinforcement

The principle that a reward should be given only when a desired behaviour occurs.

As Soon As Possible

A phrase indicating urgency, requesting that a task or action be completed in the shortest amount of time reasonably achievable.