Answer:
Buy 0.8 shares for each option purchased
Explanation:
Calculation to determine What is necessary to hedge the position
Using this formula
N=Vu-Vd/U-D
U = stock price in case of an up move = $36
D = stock price in case of an down move = $26
VU = put option value if stock goes up = $0
VU = put option value if stock goes down = $32 - $26 = $6
Using this formula
N=
−
V
U
−
V
D
U
−
D
N
=
−
0
−
6
36
−
26
N
Now let calculate What is necessary to hedge the position
Value =74 x + 6
Hence,
90x=74x + 6,
x=6/(90-74)
x=6/16
x=.375
Answer:
Explanation:
We need to recalcualte the desired ending inventory
as currently they are calcualte at 20% and we want it at 25% we do cross multiplication
Jan: 7,540 / 20 x 25 = 9,425
We divide by 20 to get the value of a single percent f sales and then we multiply to 25 as it is our desired amount
Feb: 6,500 / 20 x 25 = 8,125
March: 2,770 / 20 x 25 = 3,462.5
Next we adjsut6 the beginning inventory for January as it is 2,770 instead of 4,900 and we can determiante the production budget need for the quarter
Answer:
The answer is: Yes
Explanation:
The money Alice paid in 1985 ($20,000) is considered a sunk cost.
A sunk cost is money already spent that cannot be recovered.
So if Alice decides to buy the land or not, she will not recover a cent from the $20,000 she paid before.
Since the current price of the land is $110,000 and Alice can purchase it for $100,000, then she should buy it. She is going to earn a $10,000 profit.
Answer:
The correct answer is: True.
Explanation:
Digital economy refers to all economic transactions being carried out through the world wide web (<em>www</em>). Every day more and more entrepreneurs see on the internet their benchmark for starting a business because of the easiness of access to it. Thanks to online banking, transactions can be made in the blink of an eye from anywhere in the world.
Thus, online registration for online shopping is a clear sign of the digital economy.