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Fantom [35]
3 years ago
5

​in a simple economy of five producers and five consumers, there would be ____ transactions possible without an intermediary and

____ transactions possible with one intermediary.
Business
1 answer:
My name is Ann [436]3 years ago
8 0
<span>​in a simple economy of five producers and five consumers, there would be twenty-five transactions possible without an intermediary and ten transactions possible with one intermediary.</span>
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The current price of the common stock of Internet Enterprises is $100. Over the course of a year, the stock's price will either
KATRIN_1 [288]

Answer:

Current value of this newly issued option on Internet Enterprises= $25

Explanation:

Risk free rate for 6 month or period 1= (1000-909.09)/909.09=10%

Risk free rate for 1 year= (1000-826.45)/826.45=21%

Hence, risk free rate for period 2= (1+21%)/(1+10%)-1=10%

Now, Risk free rate factor for period 1 (R1)=1+10%=1.1

Risk Free rate factor for period 2 (R2)=1+10%=1.1

Upward price factor for a period(u)=(1+100%)^(1/2)=1.414

Downward price factor for a period(d)=(1-50%)^(1/2)=0.707

Probability of upward price= (R-d)/(u-d)=(1.1-0.707)/(1.414-0.707)=0.55

Probability of downward price= 1-0.55=0.45

After period 1: Upward price=100*1.414=141.4 with probability 55%

Downward price =100*0.707=70.7 with probability 45%

After period 2:

Upward Price will be =141.4*1.414=200 with probability= 55%*55%=30.25%

Downward price will be=70.7*0.707=50 with probability=45%*45%=20.25%

Mid price will be = 141.4*0.707 or 70.7*1.414=100 with probability =2*45%*55%=49.5%

Now, the highest price the stock can go is $200 with probability 30.25% and it was issued at $100

Hence, expected payoff of the option=30.25%*(200-100)=$30.25

So, current value of the newly issued option= 30.25/(1+21%)=$25

4 0
3 years ago
On December 1, 2017, Prosen Distributing Company had the following account balances.
maxonik [38]

Answer:

if i was u i would dived and split it into 2rolls to help me

Explanation:

i would do it but i kinda dont have time right now i hope this helps u "WHOLE LOTTA LOVE'

5 0
3 years ago
On May 7, Jernigan Company purchased on account 640 units of raw materials at $15 per unit. During May, raw materials were requi
Tema [17]

Answer:

Date               Account Title                                              Debit               Credit

May 7             Materials                                                 $9,600

                      Accounts Payable                                                            $9,600

<u>Working:</u>

= Units purchased * cost per unit

= 640 * 15

= $9,600

As the goods were purchased on account, they will be sent to accounts payable. Materials are assets so they will be debited when acquired.

3 0
3 years ago
A PERSONS ABILITY TO PAY DEBTS FROM REGULAR INCOME AND THEIR EARNING POWER IS CALLED?
nadya68 [22]
Freedom!!!!!!!!!!!!!!!!!!!
4 0
4 years ago
A holiday sales flyer advertised a video game system for a significantly reduced price and
patriot [66]
I believe it’s false advertising.

It’s like bait, they get you in the store only to tell you they don’t have the item, then proceed to sell you something much more expensive.
3 0
3 years ago
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