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zzz [600]
1 year ago
7

in 2018, a company employee received an option to purchase the company's stock at $45 per share. if the stock is trading at $40

a share in 2020, the employee will most likely
Business
1 answer:
erma4kov [3.2K]1 year ago
7 0

Based on the stock's price in 2020, the employee will most likely not bother to exercise the options.

<h3>When are options exercised?</h3>

Options are exercised by employees or other parties when the market price of the underlying stock is more than the price that the option can be redeemed at because this would lead to profit.

The underlying stock here is trading at $40 which is less than the price of redeeming the option so the employee will not exercise the options.

Find out more on exercising options at brainly.com/question/25750529

#SPJ1

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The seller of product a has no idle capacity and can sell all it can produce at $60 per unit. outlay (variable) cost is $12. wha
Marrrta [24]

The answer is $48.

The seller of product a has no idle capacity and can sell all it can produce at $60 per unit. outlay (variable) cost is $12. $48 is the opportunity cost, assuming the seller sells internally

It is calculated as follows:

Opportunity cost= Production cost- Outlay cost

                             = 60-12

                               =$48

Opportunity costs represent the potential benefits which any individual or investor, or  any business misses out on when choosing one alternative over another.

Because the opportunity costs are generally unseen by definition, they can be easily overlooked. Understanding of the potential missed opportunities when any business or any individual chooses one investment over another investment allows for better decision making.

To know more about opportunity cost here:

brainly.com/question/13036997

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5 0
2 years ago
In a Cobb–Douglas production function the marginal product of labor will increase if:
KengaRu [80]

Answer:

Option "B" is the correct answer to the following statement.

Explanation:

The rise in the labor workforce would raise the productive output of capital in a specific Cobb – Douglas output method, and it will raise the actual rental price of resources.

The gross amount of capital would also rise in the output of Cobb-Douglas if the volume of labor grows.

Under this function, human capital will help in the production of the product, human capital and marginal production are directly proportionate to each other.

3 0
3 years ago
What is the problem with companies pursuing patents specifically to hinder, or prevent, competition?
Alekssandra [29.7K]

Answer:According to the article, when companies earn patents specifically to prevent competition, it hinders the innovation of products that might actually be better. For instance, Bruce Nolop describes how his company had to pay more attention to the "minefield of existing patents than on the expected value that we could bring to customers." Rosabeth Moss Kanter suggests a "use it or lose it" solution to this problem. She thinks that a company that patents an item would be forced to use the patented idea or product or risk losing the patent. This idea would encourage more competition and prevent patent abuse.

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3 years ago
APR on a loan may be adjusted based on a borrower’s
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APR on a loan may be adjusted based on a borrower’s

credit history

8 0
4 years ago
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MakeYourClick is an online ad agency, which is known for its ability to create ads that lure customers to purchase. Brenda, an e
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Answer: Competitive Click Fraud

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According to the given question, the competitive click fraud is reduce the overall conversion rate and also skewed the information or the user data in the business. Brenda is charged the advertisement cost by clicking on the given link so Brenda has basically committed the competitive click fraud.  

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