Finance Management Ch20

46
Chapter 20 _________________________________ MyFinanceLab Solutions Titman/Keown/Martin Financial Management 11e 1

description

Key solution for finanance management ch20 :)

Transcript of Finance Management Ch20

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 1

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    2 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    $0

    $10$15

    $10

    $25

    Titman/Keown/Martin Financial Management 11e 3

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    4 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 5

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    $0

    $10 $15

    $10

    $25

    6 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 7

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    8 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 9

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    Profitswithout hedging

    Gains due to

    Loss dueto hedging

    Profit with hedg

    10 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 11

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    12 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 13

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    Break-even point

    Maximum Loss

    Maximum Profits

    14 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 15

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    16 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Break-even point

    Maximum profits

    Maximum loss

    Titman/Keown/Martin Financial Management 11e 17

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    18 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 19

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    Maximum Profit

    Break-even point

    Maximum Loss

    20 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 21

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    22 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Maximum Profit

    Break-even point

    Maximum Loss

    Titman/Keown/Martin Financial Management 11e 23

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    24 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 25

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    Maximum Loss

    Break-even pointMaximum Profit

    -$5

    26 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 27

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    28 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Maximum ProfitBreak-even point

    Maximum loss

    Titman/Keown/Martin Financial Management 11e 29

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    A.

    B.

    C.

    D.

    30 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Option Value is$20 $18 = $2

    Current stock price is $20

    Exercise price is $18

    Titman/Keown/Martin Financial Management 11e 31

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    [ ]

    32 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    [ ]

    [ ]

    Titman/Keown/Martin Financial Management 11e 33

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    34 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Option Value is$25 $20 = $5

    Current stock price is $25

    Exercise price is $20

    Titman/Keown/Martin Financial Management 11e 35

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    [ ]

    36 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    [ ]

    [ ]

    Titman/Keown/Martin Financial Management 11e 37

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    38 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 39

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    40 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 41

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    42 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 43

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    44 Titman/Keown/Martin Financial Management 11e

  • Chapter 20_________________________________MyFinanceLab Solutions

    Titman/Keown/Martin Financial Management 11e 45

  • Chapter 20_________________________________

    MyFinanceLab Solutions

    46 Titman/Keown/Martin Financial Management 11e