Under what circumstances should an option be exercised early?
What will be an ideal response?
Whenever the dividend gain exceeds both the interest savings on the dividend plus the implicit insurance value of the option.
Business
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An occupational illness is any abnormal condition or disorder caused by exposure to environmental factors associated with employment
Indicate whether this statement is true or false.
Business
An S&L owns mortgages that have a current market value of $325 million. The duration of this portfolio of mortgages is 15.9 years
The S&L finances its mortgages by issuing CDs and the current value of these liabilities is $275 million. The duration of these liabilities is 4.6 years. What is the initial duration of the equity for the S&L? A) 103.25 years B) 78.05 years C) 25.30 years D) 53.00 years
Business