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xxTIMURxx [149]
3 years ago
7

A stock price is currently $100. Over each of the next two six-month periods it is expected to go up by 10% or down by 10%. The

risk-free interest rate is 8% per annum with continuous compounding. What is the value of a one-year European call option with a strike price of $100?
Calculate the price of a three-month European put option on a non-dividend-paying stock with a strike price of $50 when the current stock price is $50, the risk-free interest rate is 10% per annum, and the volatility is 30% per annum.

Business
1 answer:
butalik [34]3 years ago
4 0

Answer:

Please see attachment

Explanation:

Please see attachment

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A downside of primary research is that it is _____. expensive and time consuming cheap but labor intensive time consuming but sp
Anarel [89]

A downside of primary research is that it is expensive and time consuming. Primary research allows people to find more inde pthinformation on a research topic or subject however, it is very expensive. Primary research is research that is new and very specific in the field they are researching. Primary research can be interviews, focus groups, surverys or other search ways to collect data.

6 0
3 years ago
The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP
Delicious77 [7]

Answer:

The correct answer is option a and option b.

Explanation:

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP.

This is because the GDP of a nation is the value of final goods and services produced in an economy in a year by both domestic citizens as well as foreign residents.

While GNP of a nation does not include the income earned by the foreign residents within the boundaries of a nation. So it is lower than GDP.

4 0
3 years ago
On August 1 of Year 1 Accounting Associates (AA) collected $1,200 cash for consulting services to be provided for one year begin
igor_vitrenko [27]

Answer:

c) Unearned Revenue $ 500, Revenue $ 500

Explanation:

When the cash was received on August 01, no accounting services were provided so the  entry would have been:

Cash Debit                                 $ 1,200

Unearned revenue Credit                          $  1,200

Unearned Revenue is a liability account

On December 31, a recognition needs to be made for the services revenue earned and hence the amount for 5 months amounting is debited to  unearned revenue and revenue credited with $ 500.  

6 0
3 years ago
Suppose you found out that the Japanese are on the verge of introducing their own mayonnaise substitute next month. Sam does not
fiasKO [112]

Answer: A. You would raise your policy premium substantially and Sam would not accept because he​ doesn't know about the Japanese.

Explanation:

In such a scenario as the one described above, the best option as an Insurance Agent is indeed to raise premiums substantially.

As the Japanese will most probably get to market first with the new Mayonnaise Substitute, they will have the rights to it's invention and could even patent it.

This means that Sam and SCAM will most likely suffer a loss as a result of this.

As there is such a high chance of loss, charging a substantially higher premium to enable coverage is only logical and makes business sense.

Sam does not know however that the Japanese are so far ahead and having rejected a substantially lower offer, will reject the newer, substantially higher one as well.

4 0
3 years ago
Spontaneous financing refers
nadezda [96]

Answer: In business, "spontaneous finance" refers to financing that arises out of regular, day-to-day operations. Unlike with other common sources of financing, such as loans or bonds, obtaining additional spontaneous financing doesn't require any special action by the company; it just "happens," hence the name spontaneous.

6 0
2 years ago
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