Answer:
The answer is 5.559539 or 5.56.
Explanation:
From the given question let us recall the following statements
The current price of A put option on a stock = $47
With an exercise price of $49
Annual risk-free rate of annual interest is = 5%
The corresponding price call option is = $4.3
The next step is to find the put value
Now,
The Call price + Strike/(1+risk free interest) The Time to maturity =
Spot + Put price
Thus
The,Put price = Call price - Spot + Strike/(1+risk free interest)Time to maturity
When we Substitute the values, we get,
Put price = (4.35 - 47) + 49/1.05 4/12
Therefore, The Put Price = 5.559539 or 5.56
From the calculation below, the profit-maximizing labor input is 0.0625, and the profit of the firm is 0.125.
<h3>How do we determine profit-maximizing labor input and profit?</h3>
From the question, we can obtain:
R = Revenue = Q*P = L^0.5 * 1 = L^0.5
C = Cost = w * L = 2L
P = Profit = R - C = L^0.5 - 2L
To obtain the profit-maximizing labor input, the first derivative of P is taken, equated to zero, and we solve for L as follows:
P' = 0.5L^-0.5 - 2 = 0
0.5L^-0.5 = 2
L^-0.5 = 2 / 0.5
L^-0.5 = 4
L^(-0.5/-0.5) = 4^(-1/0.5)
L = 0.0625 ----> profit-maximizing labor input
The profit (P) of the firm can now be calculated by substituting L = 0.0625 into the P function as follows:
P = 0.0625^0.5 - (2 * 0.0625) = 0.125 --------> Profit of the firm
Learn more about profit function here: brainly.com/question/16866047.
#SPJ1
Answer:
journal entry for every date be below
Explanation:
solution
journal entry for every date is here
date particular Debit credit
June 5 Purchase Inventory ( 210× $21 ) $4410
to cash/bank $4410
( 210 inventory purchased at $21 each)
June 9 cash/bank A/c ( 30 × $21 ) $630
Purchases Returns (Inventory ) A/c $630
( 30 inventory return )
June 16 cash/bank A/c 210 -30 × ($37 ) $6660
Cost of good sold 210 -30 × ($21 ) $3780
sales A/c 210 -30 × ($37 ) $6660
inventory A/c 210 -30 × ($21 ) $3780
remaining inventory sold at $37
Answer:
Explanation:
Yes, because business pay taxes and there is less need to spend money on benefits such as unemployment benefit. Therefore economic growth helps to reduce government borrowing.
Answer: Statement D
Explanation: If a company accept a special order then it must be doing so in order to gain or maximize its profits and the profits will only increase when there is an increase in net income.
Thus, statement D is correct implying that net income will increase when the sales price in greater than the variable cost.
