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alexgriva [62]
2 years ago
6

The current spot exchange rate is $1.55 = €1.00; the three-month U.S. dollar interest rate is 2 percent. Consider a three-month

American call option on €62,500 with a strike price of $1.50 = €1.00. What is the least that this option should sell for?
Business
1 answer:
Elan Coil [88]2 years ago
8 0

Answer:

The least that this option should sell for is $3,125.

Explanation:

Acording to the data, we have the following:

The current spot exchange is $1.55=€1.00

The call option has a strike price of $1.50=€1.00 and spot price is €62,500

Hence,to calculate  the least value this option should sell for we have to calculate the following:

$1.55-$1.50=$0.05

Hence, $0.05*62,500= $3,125.

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alexgriva [62]

Answer:

Voluntary Turnover

Explanation:

The kind of turnover that is represented in this scenario is <u>voluntary turnover</u>. Voluntary turnover is a kind of turnover that transpires when employees freely want to leave their jobs. Employees might want to depart their works for an assortment of purposes. They may feel disappointed with their job or their payment either they may be exploring a profession change rather they may have acquired different offers.

8 0
3 years ago
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aliya0001 [1]

Answer:

Inheritance

Explanation:

The above question highlights example of inheritance. Whenever the ownership of business is transferred from one generation to another, it can be taken as an example of inheritance in a capitalist system.

The same has happened in the above question as well. Chet Bowes who owned his own lanscapped business has now transferred the ownership to his son Josh who has recently taken charge, now it is very much clear from the question neither Josh built the company on his own now was hired on the basis of his capabilities, the transfer happened on the basis of his relationship with the owner of the company. The question shows an example of inheritance.

5 0
2 years ago
What is the 2016 repayment limitation for a single taxpayer who has income at a 350% poverty level?
GarryVolchara [31]
I'm assuming single means non-married, in that case your max repayment would be $1,250


6 0
3 years ago
Any item that has a definite monetary value is able to be used as:
Alex777 [14]
An installment payment is equal payments every month, meaning it is the correct answer. (B)
7 0
3 years ago
Which of the following statements regarding uncertainty in liabilities is not correct? Group of answer choices Liabilities can i
nadya68 [22]

Answer: A company can only record a liability when it knows whom to pay, when to pay, and how much to pay

Explanation:

A liability is simply defined as the amount that a particular company owes. Liabilities consist of loans, accrued expenses, defered revenue, and accounts payable.

We should note that liabilities can involve uncertainty in whom to pay. Also, a company can have an obligation of a known amount to a known creditor, but not know when it must be paid.

Based on the options given in the question, the answer will be "a company can only record a liability when it knows whom to pay, when to pay, and how much to pay".

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3 years ago
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