The fact that organizations so effective and well known are able to create a demand where it doesn't exist remains solid. Huge companies don't offer only items; they offer style, economic status, and so forth, for example a person might not like Starbucks but will use it to tell others about his status. With the correct showcasing, they can adjust their worldwide image to the local needs. That is the reason Starbucks figured out how to open many stores in China, a nation with the convention of tea drinking. Starbucks used a way to promote where Chinese did not felt threatened of losing their tea drinking culture.
Answer:
The team has completed 'developing alternatives' step in decision making process
Explanation:
Decision making is a very crucial activity carried out by a manager. Various strategies are adopted in the decision making process so as to to come arrive at an appropriate decision.
One of the stages in decision making process is 'developing alternatives' as a prospective course of action. Out of these alternatives, the best one is chosen based on various analysis.
Here, after brainstorming session, the team came up with three ideas to avoid future crashes. These three ideas represent alternatives. Out of these three ideas, the best idea or alternative would be selected.
So, team has completed 'developing alternative' stage in decision making process.
Answer:
If IBM stock price rises from $105 to $112, the profit associated with the passive strategy is $ 35,000 and the profit associated with the covered call writing strategy is $ 45,000
.
Explanation:
Shares = 5000
Price of shares = $105
Sell Price = $112
The profit associated with the passive strategy = $(112 - 105) × 5000
= $ 35,000
Now with covered call also included in the strategy the profit/loss from covered call can be calculated as
Strike Price = $110
Spot Price = $112
Total Shares on which Call options are sold = 50 × 100 = $5000
Total Premium received = 5000 × 4 = $20000
(Spot Price - Strike Price ) × Total Shares
= $(112 - 110) × 5000
= $10,000
Hence Net Profit = Premium received - $10,000 = $20,000 - $10,000
= $ 10000
Hence the profit associated with the covered call writing strategy
= $35,000 + $10,000
= $ 45,000
