Answer:
2 cents
Explanation:
The spot price = $0.7000 = 70 cents, The forward rate = $0.6950 = 69.5 cents and the call option with striking price = $0.6800 = 68.00 cents
The annualized six month rate = 3 1/2 % = 3.5 %, therefore the rate = r/n, where n is the number of period per year = 2. Therefore r/n = 3.5% / 2 = 0.035 / 2 = 0.0175
The minimum price = Maximum (spot price - striking price, (forward rate - striking price) / (1 + 0.0175), 0) = Maximum(70 - 68, (69.5 - 68)/ 0.0175, 0)
Minimum price = Maximum (2 , 1.47, 0) = 2 cents
Answer: No loss, no gain
Explanation:
When an employer changes group plan to another insurer, all employees under the previous coverage would be eligible to gain under the new plan without any delay for probation.
Answer:
The answer is: 1,375 balloon bundles
Explanation:
We can calculate how many balloon bundles must be sold using the following formulas:
- contribution margin per unit = Selling price per unit – Variable cost per unit
- Units = (Fixed costs + Target profit) / (contribution margin per unit)
Contribution margin per unit = $10 - $2 = $8
units = ($5,000 + $6,000) / $8 = $11,000 / $8 = 1,375 units
You could be a coach of some sort or you could try to be a profesinal athlete or you could be a triner
Answer:
<em>The answer will be 136.11
</em>
Explanation:
Because since the cost of the basket in 2005 is = (3x20) + (4 x 12) = 108; And the cost of basket in 2006 is = (3x25) + (4 x 18) = 147
To calculate the CPI,
- <em>Put a sampling of product prices from a previous year. </em>
- <em>Then, put the current prices of the same items together. </em>
- <em>Divide the current total prices by the old prices and then subtract the sum by 100.</em>
The Consumer Price Index (CPI) for 2006 = <em>(147/108) x 100 = 136.11</em>
