Answer:
A) according to put call parity:
price of put option = call option - stock price + [future value / (1 + risk free rate)ⁿ]
put = $6.93 - $125 + [$140 / (1 + 5%)¹/⁴] = $6.93 - $125 +$138.30 = $20.23
B)
you have to purchase both a put and call option ⇒ straddle
the total cost of the investment = $6.93 + $20.23 = $27.16, this way you can make a profit if the stock price increases higher than $125 + $20.23 = $145.23 or decreases below than $125 - $20.23 = $104.77
Answer:
D. period costs.
Explanation:
The period cost is the cost which is incurred during the passage of time. It includes the major part of the ling and administrative expenses of the income statement. This cost is not capitalized. It is to be allocated based on the expenses that are against the revenue.
Example - Depreciation on delivery trucks, advertising expense, etc
Answer:
(D) Specialize in producing something that it is relatively good at producing.
Explanation:
When a country specialises in production of a good it is relatively good at producing, its citizens will not find it difficult to manufacture the good for local consumption and export.
If the country needs product it is not good at producing it imports it from other countries that have a competitive advantage in producing it.
This will produce maximum material comfort for its citizens.
Answer:
True
Explanation:
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Answer:
Option d is correct.
<u>Adapting to mergers</u>
Explanation:
The change agent has the activity close by to ingrain trust in the workforce by coming up unmistakably on the organisation's approach for the current workforce ( of past organisation) so they can make certain about their future with the organisation and decide their future strategy. Adapting to mergers is the correct choice as the change specialist needs to prepare the workforce work and submitted as ahead of schedule as could reasonably be expected.
