The statement that holds true for the American Option is (A) Put-call parity provides an upper and lower bound for the difference between call and put prices
Explanation:
According to the Put-call parity concept when we hold the short European put and long European call of similar class the return delivered is same as holding one forward contract of the same underlying asset, that has the same expiration, forward price and which is equal to the strike price of the option
In financial management put–call parity concept is used to define the relationship that exist between the price of a European call option and European put option, and both of them have identical strike price and expiry
The formula used for calculating put call parity is
c + k = f +p
where (c) call price plus the (k) strike price of both options is equal to the futures price(f) plus the put price(p)
Answer:
Line production system
Scale of production
Development of Factories
Development of Capital Machinery
Development of Capital Goods Industry.
Explanation:
Line production system: This system was adopted in manufacturing companies to divide the tasks between the workers so a product can be manufactured in the fastest way possible
Scale of production: The manufacturing industry develop high levels of production that allow surpluses of production of goods in the economy.
Development of Factories: The manufacturing industry was the first in organize the Plant for production purposes. Therefore, the creation of what is nowadays known as factories was a consequence of this organization.
Development of Capital Machinery: Manufacturers Researched and developed new machines to improve the times of production. With time this technology was used for more industries to achieve fast performances.
Development of Capital Goods Industry: As machines were developed the industry of Capital goods arose and became an important source of technology for companies.
Answer:
Overcomes barriers to entry in another county.
Explanation:
Cross border acquisitions: Buying assets for your company in another country.
- Most companies tend to relocate itself beyond the border to get the idea of international market, and gain a competitive advantage for themselves in their domestic market.
- The primary reason for a company to relocate is, getting an entry in the market of of another company which looks profitable. By acquisition the barriers would be gone.
Answer:
unearned service revenue 7,500 DEBIT
service revenue 7,500 CREDIT
Explanation:
the job is complete on July 31th
so <em>we write-off the unearned service reveue</em>
and <em>we recognize the service revenue </em>for the whole amount of the contract
The cash receipt occurs on March 1st so w edon't haveto post anythign related to cash on July 31th.
the unearned revenue account is used first because the business has the obligation of perform the job or return the cash. So it is a liablity until the job is completed
