C Ethan
because that is who u are refering to.
I think the correct answer from the choices listed above is option B. A focused market would not be one of the factors that is <span>required to charge for online content. Since the market is already available and is always there. Hope this answers the question. Have a nice day.</span>
Answer:
increase spending
Explanation:
In order to try to rebound the economy the FED has three options:
- Carry on an expansionary monetary policy which increases the money supply and decreases interest rates, which should increase aggregate demand.
- Increase government spending, which should increase total aggregate demand.
- Decrease taxes, which would increase the amount of disposable income held by consumers and businesses, which should also increase aggregate demand.
The problem is that nothing is free; an expansionary monetary policy increase the inflation rate, an increase in government spending and a decrease in taxes increases the government deficit and national debt (and the interests paid on them).
<u>Solution and Explanantion:</u>
<u>Determining the gain or loss recognized by M corporation
</u>
Loss to be recognised = Market Value – Purchase Value
= $75000
Thus, loss to be recognised by the “M” corporation is $75000
<u>Determining the gain or loss of A:
</u>
![=[(\$ 575000-\$ 425000) * 40 \%]-\$ 100000](https://tex.z-dn.net/?f=%3D%5B%28%5C%24%20575000-%5C%24%20425000%29%20%2A%2040%20%5C%25%5D-%5C%24%20100000)
= ($40000)
Thus, loss to be recognised by A is $40000
Answer:
Using the Put-Call parity principle where the following relationship holds:
Covered Call = Protective Put
Using the above, find the call price:
Call + Strike price / (1 + risk free rate) = Stock price + Put
Call + 18 / (1.08) = 20 + 3.33
Call + 16.67 = 20 + 3.33
Call = 23.33 - 16.67
Call = $6.66
<em></em>
<em>The call option is overvalued at $7 so sell the Call option and buy the Put option and the Stock and borrow $16.67 which is the present value of the Put. </em>
<em>The net gain will be:</em>
<em>= 7 - 6.66</em>
<em>= $0.34</em>
