Which of the following types of business usuallly has the fastest invetory turn over ?

The risk-free rate is 3%. MCD currently prices at $25. The Delta of a 1-year at-the-money European call on MCD is 0.5. John has

erica [24]

Answer:

Short 1.5 shares

Explanation:

Given data :

Risk free rate = 3%

current price ( market price ) = $25

Delta of 1-year at money European call on MCD = 0.5

Determine how many shares of MCD John should either Long or short to achieve a delta-neutral

use the relation below

4 * 0.5 + 1 ( 0.5 - 1 ) + x = 0

x ( number of shares ) = - [ 4 * 0.5 + 1 ( 0.5 - 1 ) ]

= - 1.5 shares

negative ( - ) means MCD should short 1.5 shares

5 0

2 years ago

The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many

satela [25.4K]

Answer:

Approximate price of marble statue in USD is:

= Price of statue * Foreign Currency Cost of one unit

= 1,700 * 0.9213

= US$‭1,566.21‬

If the nominal exchange rate for the U.S. dollar–euro rises from $1.3457 to $1.547555 per euro, the euro appreciated in value, or appreciated, relative to the U.S. dollar.

If this direct rate increases from $1.3457 to $1.547555 per euro, it means that one Euro can now buy more dollars than before which means that it gained/ appreciated in value relative to the USD.

For instance: Before the change, €10 = 10 * 1.3457 = $10.3457

After the change, €10 = 10 * 1.547555 = 10.547555

Euro therefore became stronger relative to the USD.

6 0

3 years ago

Your project sponsor has asked you to explain the negative or threat risk response strategies and the opportunity or positive ri

Semmy [17]

Answer: kindly check explanation

Explanation: Risk as related to a project may be reffered to as occurrences or factors which could affect a project, they may not always be negative as usually perceived, they may be positive. Hence, when a perceived negative risk is perceived, it is essential to escalate and ensure that the necessary stakeholders become aware so as to find ways of mitigating or avoiding such happening.

In the case of positive risk or opportunity, escalating is equally important as it ensures relevant executives are aware and hence work on ways or processes to foster, embrace and exploit the advantage.

3 0

2 years ago

Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned $30,000 per year, to open up a store sellin

8_murik_8 [283]

a) Ernie's accounting profit is $40,500.

b) Ernies economic profit is $10,500, excluding the salary forgone (opportunity cost) from the accounting profit.

<h3>What is the difference between accounting profit and economic profit?</h3>

The difference between accounting profit and economic profit is that accounting profit does not consider the opportunity costs, which economic profit factors in.

Accounting profit is narrower in concept than economic profit. It is simply revenue minus total costs without opportunity cost.

Economic profit, on the other hand, includes the opportunity costs in the total costs.

<h3>Data and Calculations:</h3>

Salary per year at P.E.T.S = $30,000

Annual interest from savings = $500 ($10,000 x 5%)

Revenue in the new business = $50,000

Explicit costs = $10,000

Accounting profit = $40,500 ($50,500 - $10,000)

Economic profit = $10,500 ($50,500 - $10,000 - $30,000)

Thus, Ernie's accounting profit is $40,500 and the economic profit is $10,500.

Learn more about accounting profit and economic profit at brainly.com/question/27113609

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4 0

1 year ago

Beau said to a close friend, "I am fed up with my company's continual disregard for the environment. They secretly dispose of ha

RideAnS [48]

Answer:

Beau's decision to tell somebody about his company's actions is an example of: whistle blowing

Explanation:

Ethics is the study of moral human behavior. Ethical behavior usually varies with different areas. What is considered ethical is always subject to the cultural standards of that particular place. In a company environment, there are ethical standards that are supposed to be met on the part of the company and also individuals working in the company.

One major ethical standard that companies must maintain is environmental protection. This is more prevalent in manufacturing companies that have to release toxic waste to the environment in the form of fumes to the atmosphere or liquid waste to rivers and water bodies. The environment is used by all living beings and therefor it needs to be protected. Ethical standards dictate that industrial waste should be kept below toxic levels before being released into the environment.

It is also ethical for any individual working in a company and has information about unethical practices of a company to publicly expose the company so that they can be held accountable for their actions. This is referred to as whistle blowing. Beau's decision to inform a newspaper reporter about the actions of the company in destroying the environment is an example of whistle blowing. Her decision is a typical example of ethical behavior.

8 0

3 years ago