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dusya [7]
3 years ago
15

Which of the following is true regarding the value of an option? A) Unlike the Black-Scholes formula, the Put-Call Parity sugges

ts that the volatility of underlying asset is not a factor that affects the value of an option. B) The option premium is greater or equal to its intrinsic value because of the time premium. C) The call and put premiums are unrelated since they depend on different set of variables. D) The writer of the call option pays the same premium as the buyer of the put option. E) When the call option is out-of-the-money and the put option is in-the-money, the call must be more valuable than the put.
Business
1 answer:
NeX [460]3 years ago
6 0

Answer: B) The option premium is greater or equal to its intrinsic value because of the time premium.

Explanation:

The option premium can be calculated by adding the time premium and the intrinsic value. The time premium is the part of the option premium that accounts for the time remaining till the premium matures while the intrinsic value is the difference between the value of underlying asset and the strike price.

As the time premium can be zero but never negative, the option premium can either be greater than its intrinsic value or equal to it. It cannot be lower than it because of the time premium.

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one markeitng action that can be taken to sell a single product or service to muylpele market segments is to
HACTEHA [7]

Answer: C. develop separate promotional campaigns.

Explanation:

Different market segments will have different norms and values that companies will have to take advantage of in order to sell their goods or services.

They will therefore need to develop separate promotional campaigns that are aimed at taking advantage of these norms and values in order to appeal to the people in the different segments.

4 0
3 years ago
"Betty has been working for Bright Fires for about five years. She compares herself to different managers, such as Meg, who work
Dafna11 [192]

Answer:

External comparison

(occupational equity)

Explanation:

Motivation is commonly defined as a set of distinct energetic forces that occurs as a result of both within and outside an employee; start with work-related effort; and set its direction, intensity, and constancy.

Equity theory is simply a theory of motivation. It shows that motivation is based on an individual's views of his/her life and what happens in lives of other people.

comparison others

Based on the theory of equity, this is the act of viewing or examination our own efforts and results and them comparing them to the efforts and results of others people. Therefore we use the other individuals as a comparison other.

External comparison

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7 0
3 years ago
Read 2 more answers
When the price of candy bars decreased from $0.55 to $0.45, the quantity demanded changed from 19,000 per day to 21,000 per day.
Elanso [62]

Answer:

The answer is -0.5

Explanation:

I will attach a jpg file explaining the procedure used in obtaining the answer. I used the midpoint formula to calculate for percentage change in Quantity and Price, before calculating the Price-elasticity coefficient.

7 0
3 years ago
Product A is normally sold for $9.60 per unit. A special price of $7.20 is offered for the export market. The variable productio
elixir [45]

Answer:

A. Reject (Alternative 1) $0.00

Accept (Alternative 2) $1.12

Differentials Effect on income (Alternative 2) $1.12

B. Accepted (Alternative 2)

Explanation:

a. Preparation of a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order.

DIFFERENTIAL ANALYSIS

Reject (Alternative 1) or Accept (Alternative 2)

March 16

Reject Accept Differentials Effect on income

(Alternative 1) (Alternative 2) (Alternative 2)

Revenue per unit $0.00 $7.20 $7.20

Costs:

Variable manufacturing costs per unit

$0.00 -$5.00 -$5.00

Export tariff per unit

$0.00 -$1.08 -$1.08

($7.20*15%=$1.08)

Income (Loss) per unit $0.00 $1.12 $1.12

b. Based on the above differential analysis

the special order should be ACCEPTED (Alternative 2).

5 0
3 years ago
The purpose of a budget is to track your income and your spending. true or false?
skad [1K]
False we use it to save money
3 0
3 years ago
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