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Jobisdone [24]
3 years ago
11

Which of the following statements is CORRECT?

Business
1 answer:
yawa3891 [41]3 years ago
6 0

Answer: The market value of an option depends in part on the option's time to maturity and on the variability of the underlying stock's price

Explanation:

The value of an option is made up of the time premium plus the intrinsic value of the option. When risk free rate rises, the price of a call option also rises.

It should be noted that the current value of the option trade is dependent on the price that one paid, and the underlying stock price.

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A stock is expected to return 8% in a normal economy, 12% if the economy booms, and lose 3% if the economy moves into a recessio
JulijaS [17]

Answer: 6.91%

Explanation:

Expected return = Sum of (Probability of state of economy * Return given state of economy)

= (56% * 8%) + (12% * 25%) + (19% * -3%)

= 4.48% + 3% - 0.57%

= 6.91%

8 0
3 years ago
Convertible bonds:_________
tigry1 [53]

Answer:

c) Provide potential benefits to both the issuer and the investor.

Explanation:

Convertible Bonds are Bonds that can be converted to Common Stocks at the the option of the investor or the issuer.

They represents the potential voting rights to the investor if they are converted to Common Stocks. This means the investor can take part in decision making of the company.

They also presents benefits to the issuer in that it reduces the financial risk of defaulting interest payments. This is good for the gearing ratio as well and can attract more investors.

5 0
2 years ago
Cost outlays are recorded as an expense when they are incurred to earn revenue in the _______________ accounting period
Deffense [45]

Answer:

Present

Explanation:

An outlay cost is a cost incurred at the time when we have to execute the strategy or purchasing an asset. It can be paid to the vendors for purchasing the goods like for inventory. So this cost should be recognized as an expense when they are incurred in order to earn the revenue in the current or present accounting period

8 0
2 years ago
Help!!!!!
uysha [10]
1. revenue 2. income 3. graph 4. equity 5. balance sheet 6. income taxes
5 0
2 years ago
Populations of organisms that live in and interact in a particular are form ?
frozen [14]
All of plant and animal populations living in an habitat interact and form a community. Hopefully this answers your question.
8 0
3 years ago
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