Answer:
The price of a 6-month call option on C.A.L.L. stock is $13.52
Explanation:
According to the given data we have the following:
P = Price of 6-months put option=$10.50.
So = Current price=$125
X = Exrecise price=$125
r = Risk free interest rate= 5%
T = Time 6 months = 1/2
In order to calculate the price of a 6-month call option on C.A.L.L. stock at an exercise price of $125 if it is at the money, we would have to use the formula of put-call parity as follows:
C=P+So- (<u> X )</u>
( 1+r)∧T
C=$10.50+$125-(<u>$125 )</u>
(1+0.05)∧1/2
C=$135.5-121.98
C=$13.52
The price of a 6-month call option on C.A.L.L. stock is $13.52
Answer:
a.Contingency
Explanation:
The Contingency theory of leadership is a theory that establishes that a leader is successful when the style used fits the situation. This theory states that the best leadership style is the one that best adapts to the context. So, the Gore company more than likely adheres to the contingency theory of leadership because their leaders are not chosen but emerge according to the project they are working on and by other employees.
B. An airline
An airline is a service organization.
Answer:
16,000
Explanation:
The amount of inventory to be produced is dependent on the projected sales, the expected opening and ending balances.
If the company desires to have an ending inventory of 80% of the next month's sales. It means that the ending inventory for August
= 80% × 15,000
= 12,000 units
Let the units to be produced in August be G, then;
8000 + G - 12000 = 12000
G = 12000 + 12000 - 8000
= 16000 units
The company should produce 16,000 units in August.
