Answer:
Put options give the holder the right to sell the underlying stock to the seller of the put option.
Put options are advantageous when the price in the market falls below the strike price of the option because the buyer will be able to sell at above market value and make a profit.
The asking price for a strike price of $9.00 is listed to be $0.33 and this is the premium paid by the buyer of the Put Option.
<h2>
1. Return if stock sells for $8.00</h2>
= Amount received/ Amount spent
= (No. of shares * ((Strike price - Market price) - Premium paid) ) / (No. of share * premium)
= (2,300 shares * (($9.00 - 8.00) - 0.33))/ ( 2,300 * 0.33)
= 2.03
= 203 %
<h2>
2. Return if stock sells for $10.00. </h2>
As this is an option, the investor can decide not to sell to the seller. The market price is higher than the strike price so they will not sell to the seller of the option and the return will be;
= (No. of shares * - Premium paid) ) / (No. of share * premium)
= (2,300 shares * - 0.33)/ ( 2,300 * 0.33)
= -1
= -100 %
Answer:
decision rights, rewards, and evaluation systems.
Explanation:
The aspects the decision firm looked into looked are decision rights, rewards, and evaluation systems.
1. Decision rights:
The person who makes all the relevant decisions should have all informations available. People with relevant information should be made to take key decisions. This would increase the possibility of the organization being in the right
direction.
2. Rewarding: this is rewarding those individuals who make the right decisions. Employees who have decision making rights should be rewarded with incentives when they make the right decisions.
3. Evaluation systems: These should be put in place to check the performance of individuals and business units.
Answer:
Both Hillyland and Flatland will be better off in a win-win solution if they engage in comparative advantage.
Explanation:
Suppose each nation decides to specialize in the most suitable crop, and trade with the other nation for the other product, the trade-offs will be the products they supposedly can produce but do not have comparative advantage in. For Hillyland it will be rice and for Flatland it will be coffee.
When both nations practice comparative advantage there will be no losers because economic theory suggests that, when countries practice comparative advantage, the sum total of their combined output will be greater than if they had produced all products themselves because they wanted to be self sufficient.
The logic is simple, goods are less costly to produce in a country that has comparative advantage and at the end they could be sold cheaper to the country that traded it off.
Answer: Synergies
Explanation: Synergy is achieved when people work together and achieve something greater than the sum of what they could've achieved alone.
When the output of some units in a firm can be used as inputs to other units, synergies develop, which can lower costs and generate profits.
