a) Explain SIX (6) determinants of the value of call options. (12 marks) b) The...
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a) Explain SIX (6) determinants of the value of call options. (12 marks) b) The RTZ Co. has a current beta of 1.7. The market risk premium is 8 percent and the risk-free rate of retum is 4 percent. Determine the value for the cost of equity increase if the company expands their operations such that their company beta rises to 1.9. ( 3 marks) c) Explain FIVE (5) basic differences between the operation of currency forward contracts and currency futures contracts
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a) Explain SIX (6) determinants of the value of call options. (12 marks) b) The RTZ Co. has a current beta of 1.7. The market risk premium is 8 percent and the risk-free rate of retum is 4 percent. Determine the value for the cost of equity increase if the company expands their operations such that their company beta rises to 1.9. ( 3 marks) c) Explain FIVE (5) basic differences between the operation of currency forward contracts and currency futures contracts 