Answer: $1.43
Explanation:
To solve this, we would use the put call parity. We then calculate the value of the out which will be:
= $7.14 + $15/(1 + 5%) - $20
= $7.14 + $15/(1 + .05) - $20
= $7.14 + $15/(1.05) - $20
= $7.14 + $14.29 - $20
= $1.43
The price of an equivalent put option is $1.43
A. Mood, interest.
Keeping your MOOD and INTEREST in mind will dictate what you say and how you say it.
Answer:
The correct answer is: reduce the world price of import when they levy a tariff.
Explanation:
Import tariffs make foreign goods more expensive, encouraging the purchase of domestic goods. Governments also justify applying tariffs to protect national jobs, infant industries, to retaliate against a trading partner, or to protect their consumers.
On the other hand, a less common tariff is the export tariff. That is, the one that is imposed on a good or service sold abroad in your country. They are generally imposed by countries that export primary products, either to increase incomes or to create shortages in world markets and thus raise world prices.
The imposition of tariffs is known as tariff barriers. In addition, there are non-tariff barriers to promote the protection of national industries. It consists of putting technical, legal obstacles, quotas or other measures that discourage importation.
