Answer:
The correct anwer is B. real-options perspective.
Explanation:
They are known as Real Options to the possibilities that some projects have to introduce, in the future, modifications in productive investments thus increasing their value. In practice, managers often refer to these options as intangibles.
The classic models of valuation of investment projects based on the discount of cash flows (NPV, IRR), do not incorporate in the project valuation the possibility of introducing modifications, so that the total value of the project is increased. Therefore, the non-consideration of these modification options may undervalue investment projects by not considering aspects that may be strategic for the company and cause it to discard projects that it should undertake.
The existence of Real Options increases the value of an investment project. In this way, the value of the total project can be calculated as the value of the project without the option (NPV) plus the value of the option.
Answer:
Premium is an amount paid periodically to the insurer by the insured for covering his risk. Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium.
Explanation:
a
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:
The value of GDP is 75
Explanation:
GDP is equal to Consumption + Investment + Government Spending + Net Exports (Exports minus Imports), where total Investment is equal to Fixed Investment plus the Change in Inventories.
The change in GDP will therefore equal the change in Consumption + the change in Investment + the change in Government Spending + the change in Net Exports, where the change in Investment will equal the change in Fixed Investment plus the change in the Change in Inventories.
= Government purchases of goods and services (10) + Consumption Expenditures (70
)+ Exports (5
) - Imports (12) + Change in Inventories (-7
) + Construction of new homes and apartments (15
) - Sales of existing homes and apartments (22
) + Government payments to retirees (17
) + Business Fixed Investment (9)
= 75
Answer:
D
is ticketed for careless driving
Explanation:
FINRA Rule 4530 says one can report
each member of the firm promptly to FINRA, within 30 calendar days,
