Answer:
a. $13,000
Explanation:
Calculation for what royalty revenue should be
First step is to find the estimated amount for the second half of the year
Royalties for the second half =
15%*$30,000
Royalties for the second half= $4,500
Now let Compute for the total royalty revenue
Total royalty revenue for 20X5=$8,500+$4,500
Total royalty revenue for 20X5=$13,000
Therefore the royalty revenue should be $13,000
Answer:
b. payoff
Explanation:
In the context of business, this measurement is known as a payoff. In other words, it refers to whatever is obtained as a final result from a specific outcome generated after making specific decisions. Every business decisions revolve around what the potential payoffs will be in order to decide whether or not they will be worth making and if the benefits outweigh the negative aspects.
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Answer:
a) $ 495
b) $ 530
c) $ 30
d) $ 70
Explanation:
Given:
Stock price = $ 495
Strike prize = $ 530
a) The maximum possible price of a call option on Amazon is the stock price,
thus, the answer is $ 495
b) the maximum possible price of a put option on Amazon is the strike prize, thus, the answer is $ 530
c) given:
strike price = $ 465
now,
Minimum possible value of call option is given as :
⇒ Stock price- strike price
on substituting the values, we get
⇒ $ 495 - $ 465
or
⇒ $ 30
thus,
answer is $ 30
d) Given:
strike price = $ 565
Minimum possible value of an american put option on amazon stock is calculated as:
⇒ Strike price- stock price
on substituting the values, we get
⇒ $ 565 - $ 495
or
= $ 70
hence, the answer is $ 70