Stella bought a new refrigerator from Sears and wrote a personal cheque for it for $1,800. Stella knew that there was only $500 in her bank account when she wrote the cheque, but she needed the refrigerator right now
Stella thought if she got a new job soon she would pay Sear the money she owed. Sears could
A) successfully sue Stella for negligence
B) successfully sue Stella for nuisance
C) successfully sue Stella for trespass to goods
D) successfully sue Stella for conversion
E) not successfully sue Stella as she did plan to pay if she got a new job soon
D
Business
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Consider a two-period binomial model, where each period is 6 months. Assume the stock price is $50.00, ? = 0.20, r = 0.06 and the dividend yield = 3.5%. What is the lowest strike price where early exercise would occur with an American put option?
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