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Burka [1]
3 years ago
7

You have written a call option on Walmart common stock. The option has an exercise price of $89, and Walmart’s stock currently t

rades at $87. The option premium is $1.35 per contract. a. How much of the option premium is due to intrinsic value versus time value? b. What is your net profit if Walmart’s stock price decreases to $85 and stays there until the option expires? c. What is your net profit on the option if Walmart’s stock price increases to $95 at expiration of the option and the option holder exercises the option?
Business
1 answer:
Alexandra [31]3 years ago
7 0

Answer:

A. Intrinsic value is 0. Time value is 1.35.

B. 1.35

C. -4.65

Explanation:

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The existence of different age groups within a company's target markets is referred to as
PolarNik [594]

Answer:

multigenerationalism.

Explanation:

Multigenerationalism is the term used to describe Marketing to different generations.

Only a few products will appeal to all age groups. A company will develop a variety of products to attract diverse age groups.  A Single product firm or one with few products may differentiate its goods or services to appeal to a wider target. Multigenerationalism exists when a business has different age groups in its target market.

5 0
3 years ago
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produ
Elan Coil [88]

Answer: Higher; Comparative advantage

Explanation:

A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodities is lower than the other country or firm.

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

Therefore,

United states's Opportunity cost of producing a pair of shoes = \frac{100}{20}

= 5 apples have to be foregone for producing a pair of shoes

Canada's Opportunity cost of producing a pair of shoes = \frac{20}{10}

= 2 apples have to be foregone for producing a pair of shoes

Hence, Canada has a comparative advantage in producing pairs of shoes because Canada's opportunity cost of producing a pair of shoes is lower than United states opportunity cost.

5 0
3 years ago
Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-peri
agasfer [191]

Answer:

e. none of the choices.

Explanation:

Based on the scenario being described within the question it can be said that  none of the choices are correct because this method focuses on obtaining an order quantity by fixing the quantity for a certain period of time, and calculating the total quantity of Net Requirements within the period. Therefore since the first week and week 4 are missing then none of these are correct, and since the information is not provided by choice answer d. is wrong too.

3 0
3 years ago
using the scenarios in case exhibit 9, what role does leverage play in affecting the return on equity (roe) for cpk? what about
motikmotik

Using the scenarios in case exhibit 9, Leverage will always lead to an increase in the total rate of return in the equity because leverage will be increasing the interest tax Shield due to which it can be seen that the total market value of the company has increased with a higher amount of debt capital.

The cost of capital is generally decreasing with a higher amount of leverage as there will be benefits associated with interest tax shield.

It can be noticed that when a high amount of leverage is used by the company, it is eventually leading to a higher amount of market value for the company as well so higher leverage is leading to a higher amount of market value for the company so leverage is directly related to increases in the market value as high amount of leverage will be increasing the total market value.

Leverage is an investment strategy that uses borrowed money (specifically, the use of various financial instruments or borrowed capital) to increase the potential return on investment. Leverage can also refer to the amount of debt a company uses to fund its assets.

Leverage is the amount of debt a company has in its debt-equity combination (capital structure). A company with more debt than the industry average is considered highly leveraged. The definition of leverage is the act of leverage or force to influence a person, event, or thing. An example of a lever is the action of a seesaw. An example of leverage is being the only person running for class president. noun.

Learn more about  Leverage here

brainly.com/question/3966216

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6 0
1 year ago
If the price elasticity of demand for a product is 2. 5, then a price cut from $2. 00 to $1. 60 will:_______
hoa [83]

Increase the quantity demanded by about 25 percent.

<h3>What is the short definition of price elasticity?</h3>
  • Price elasticity in business and economics refers to how much people, consumers, or producers alter their demand or the quantity supplied in reaction to changes in price or income.
  • It is mostly used to evaluate how consumer demand has changed as a result of a price change for a good or service.
<h3>What are some examples of price elasticity of demand?</h3>
  • When a price increase results in a greater percentage reduction in demand, we say a good is price elastic.
  • For instance, if price increases 20% and demand declines 50%, the PED equals -2.5. One illustration is Heinz soup. Heinz soup options are plenty today.

learn  more about price elasticity of demand here

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3 0
2 years ago
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