Answer:
A) according to put call parity:
price of put option = call option - stock price + [future value / (1 + risk free rate)ⁿ]
put = $8.89 - $120 + [$120 / (1 + 8%)¹/⁴] = $8.89 - $120 +$117.71 = $6.60
B) you have to purchase both a put and call option ⇒ straddle
the total cost of the investment = $8.89 + $6.60 = $15.496, this way you can make a profit if the stock price increases higher than $120 + $6.60 = $126.60 or decreases below than $120 - $6.60 = $113.40
Answer:
A decrease in labor force participation rate
Explanation:
The workers which are discouraged can opt out of the labor market since there is no incentive for them work anymore. The workers choosing to go out of the labor market will decrease the overall labor force participation rate. The unemployment rate can also be affected but the main effect would be on labor force participation rate
Answer:
Job description.
Explanation:
A job description is an internal document that a firm draws up to describe the responsiblities of a position, the required skill, and job requirements to perform a particular job role.
When a job description is well crafted it shows clearly what is required to hire a person for a job. This will reduce discrimination lawsuits because it will show clearly why a particular candidate was disqualified from the hiring process.
For example if a candidate was disqualified for not having a bachelor's degree, it should be well stated in the job description to avoid discrimination claims.
Answer:
a. want to avoid potential disputes.
Explanation:
The auditors are liable to report all the acts of the company, whether are in confirmation of law or not. This is because it is their duty to put a review on the balance sheet, and provide the users of such balance sheet the trust on the information presented.
Even if the agreement do not provide for complete details making it a valid contract this is sure that they need to act properly so that any moral dispute do not occur and that, all the work is done according to the responsibilities.
