Answer:
Explanation:
Solution:
Parameters are u = 0.1, d = −0.1, 1 + r = e
0.5×0.08. So the risk-neutral probability is
p
∗ = 0.7. After evaluation of the options at the terminal nodes we use the risk-neutral
valuation to get (i)
πC(0) = e
−2(0.5×0.08) £
0.7
2 × 21 + 2 × 0.7(1 − 0.7) × 0 + (1 − 0.7)2 × 0
¤
= 9.61
and (ii)
πP (0) = e
−2(0.5×0.08) £
0.7
2 × 0 + 2 × 0.7(1 − 0.7) × 1 + (1 − 0.7)2 × 19¤
= 1.92
(iii) For put-call parity one has to verify S − πC + πP = Ke−r
, here :
100 − 9.61 + 1.92 = 100e
−0.08
.
<span>C. Assemblers in auto factories Because these jobs (as well as surgical, and else) are being now performed by machines which will makes most likely for a downfall to occur in the next decade.
Technology also aids a lot in hospitals, but more people are going into these fields. Therefore, auto factories is the choice that mostly stands out.</span>
A. Traders borrowing money from their brokers.
Answer:
The study of human problems arising from organizational and interpersonal relations (as in industry).
Explanation:
Answer:
The correct answer is letter "C": a fall in the price of tennis balls.
Explanation:
The demand law explains the relationship between the price of a product and its quantity demanded. As the price increases, the quantity demanded decreases moving the demand curve to the left. As price decreases, the quantity demanded decreases, moving the demand curve to the right.
Therefore, <em>if the demand curve for tennis balls moves to the right, the price has fallen increasing the quantity demanded.</em>