$2 is the current payoff value of this option.
First calculate the price of the option contract: 100 shares x $1 = $100. The security price is now above breakeven, so the call option is "in the money". This is because the investor makes a profit by buying $60 per share at a strike price of only $55 per share.
The idea behind a call option is that if the current stock price exceeds the strike price, the option holder can sell the stock for a profit. You can calculate your profit by subtracting the strike price and the cost of the call option from the current market price of the underlying asset.
Buying a $5 put option gives you the right to sell 100 shares at $100 per share. If ABC Company's stock price drops to $80, he exercises his option to sell 100 shares at $100 per share, for a total profit of $1,500.
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Answer:
Decentralised organisation
Explanation:
Decentralised organisation are those in which most of the authority to perform tasks is given to.lower level management or even individual teams.
This results in a system where decisions are made faster.
Also a small amount of control is maintained for major decisions.
In the given instance Jake's company gives all lower-level managers the authority to make decisions for his or her department, this is a decentralised organisational system
Answer:
Process Costing
Explanation:
Process Costing allows so many units to be in production at the same time which are identical. The cost of each unit can be determined by calculating the average price using to total units produced.
Answer: Define Project Needs, Understand the Project Objectives, Define the Project Scope
Explanation: Project Scope is defined as the work that needs to be accomplished to deliver a product, service, or result with the specified features and functions.
The scope of the project should have a tangible objective for the organization that is undertaking the project
There are 3 main steps of project scope and they are:
1. Define Project Needs
2. Understand the Project Objectives
3. Define the Project Scope
Scope statement are the documentation of the scope of the project will explain the boundaries of the project, establish the responsibilities of each member of the team and set up procedures for how the work that is completed will be verified and approved.