Banks proved extremely unstable, and we had a history of the rich holding most of it
Answer:
The correct answer is letter "A": operating activities.
Explanation:
Operating Activities are the daily processes conducted by a company to generate income. They pertain to the company's core business activity such as sales and manufacturing and they provide most of the cash flow that determines whether a business is profitable.
When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.
Answer:
is the amount that sellers are willing and able to sell at a particular price.
Explanation:
Quantity supplied refers to the amount of goods sold or supplied at a particular price by the sellers in the market. According to the law of supply, there is a positive relationship between the price of the commodity and the quantity supplied of that commodity.
This indicates that an increase in the price of the commodity will lead to increase the quantity supply of the commodity and a decrease in the price of the commodity will lead to decrease the quantity supplied of the commodity.
Answer:
Explanation:
The Risk neutral probability is given by
e
rt
−
D / U-D
U=1.1
D=0.9
R=0.12
T=3/12
π
u
=
e∧
0.12
∗
3
/
12
−
0.9
/1.1
−
0.9
=0.652
π
d
=
1−
0.652
=
0.348
The values of american and european options at each node is given in the following table.
0.652
0
0.81 48.4
0.652
0.81
American option value 2.54 44
probability 0.652/0.3478'
Option value 2.12 2.4
Futures price 40 6 39.6
0.3478
4.76
36
0.3478
9.6
32.4
Time period 0 3 6
the value at up node at 3 months is given by = (
0.652∗
0
)
+
(
0.3478
∗
2.4
)/e
∧0.12
∗
3
/
12 = 0.81
Hence, value of european put option =$2.12
Value of American put option = 2.54