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:
Explanation:
Rule 70 is used to estimate how long it tales a cashflow amount to double.
The formula is as follows ;
Number of years = 70 / growth rate
<u>At 1.4% growth rate;</u>
Number of years = 70 / 1.4 = 50
<u>At 3.2% growth rate;</u>
Number of years = 70 / 3.2 = 21.88
<u>At 4.9% growth rate;</u>
Number of years = 70 / 4.9 = 14.29
<u>At 6.4% growth rate;</u>
Number of years = 70 / 6.4 = 10.94
<u>At 7.5% growth rate;</u>
Number of years = 70 / 7.5 = 9.33
Answer:
When the treasury bonds are restricted to purchase it creates pressure on other securities and interest rates tend to move upwards.
Explanation:
When interest rates more upwards then cost of borrowing is increased. This increase in cost of borrowing creates pressure on the profits of private sector. The public sector benefits from this increase in interest rates. When government is in trouble and financing is limited then these measures are used to run the economy.
Answer:
B. add value to
Explanation:
Customer service includes all forms of assistance and advise given to a firms' customer.
A firm with good customer service adds value to the firms' product.
For instance, if I buy a decoder and can't figure out how to set it up, if I contact a firm's customer service and they are unresponsive or provide bad service, I might be unable to effectively use the decoder. This would reduce the value of the decoder to me.
But if I contact the customer service and they are prompt to answer my questions and give assistance, the value of the decoder to me would be enhanced.
I hope my answer helps you
Answer:
The most suitable answers are,
A) The government promotes competition between businesses.
B) The government owns or partially owns some businesses.
Explanation:
In a mixed market economy, bother government and the private sector plays an important role in the economy. Moreover, government tends to regulate the economy and it's activities to ensure a smooth flow.
In addition, both state owned and privately owned corporations present as well.
