Answer:
C
Explanation:
Backward induction is the process of going backwards in time with yZermelour reasoningreasoning , from the end of a problem or situation, to determine a sequence of optimal actions. It starts by first considering the last time a decision might be made and choosing what to do in any situation at that time. Using this information, one can then determine what to do at the second-to-last time of decision. This process continues backwards until one has determined the best action for every possible situation (i.e. for every possible information set) at every point in time. IZermelo was the first to use this technique in 1913 to make a point that chess has pure optmal strategies
Answer:
False
Explanation:
A put option buyer purchases a right to sell a currency on expiry date at a pre determined exercise price or strike price. Put buyer is not under any obligation to sell the option. He will only exercise the right when it is beneficial for him.
3 terms are relevant here,
OP= Option premium paid
CMP= Current Market Price
EP= Exercise or strike price
A put buyer gains when his exercise price is more than the CMP on the expiry date.
His gain is = EP - CMP - OP
So, when exercise price as reduced by option premium paid is equal to current market price, break even point for a put buyer is reached.
Hence the given statement is false.
Answer:
monthly mortgage interest is less than monthly lease cost
Explanation:
4% of 1000000
= $40,000 per year
Per month: 40000/12
= %3,333.33
Monthly mortgage interest is less than monthly lease cost
Debt in any form worsens the financial position of the company as it is money that the company does not really have and will eventually have to be repaid. if self financing is the same as introducing capital then this would improve the financial standing of the company as this money does not have to be repaid but is the company's to use
