1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
NNADVOKAT [17]
3 years ago
12

T-bills currently yield 4.8 percent. Stock in Nina Manufacturing is currently selling for $85 per share. There is no possibility

that the stock will be worth less than $78 per share in one year. a-1. What is the value of a call option with a $70 exercise price?
Business
1 answer:
slega [8]3 years ago
5 0

Answer:

The correct answer is $18.206.

Explanation:

The yield percentage is given as 4.8%.

The stock price is given as $85.

The exercise price of the call option is given as $70.

Value of the call option will be

= Stock price- present value of the exercise price

= 85-\frac{70}{1+0.048}

= $85 - $66.79

= $18.206

So, the value of call option is $18.206.

You might be interested in
Allocating funds to promotion whereby the company determines its promotion objectives, outlines the tasks to accomplish these ob
ikadub [295]

Answer: objective and task budgeting

Explanation:

Objective and task budgeting is a method used whereby the marketer decides the objective that will need to be accomplished and the necessary tasks that are required to to achieve such objectives.

This csn consist of the allocation of funds to promotion whereby the company determines its promotion objectives, outlining the tasks to accomplish these objectives, and also determining the promotion cost of performing these tasks.

4 0
4 years ago
Suppose the marginal propensity to consume is 0.8 and the government votes to increase taxes by $3 billion. Round to the nearest
KonstantinChe [14]

Answer:

a) -4

b) -12 billion

Explanation:

Question 1) Calculate the Tax Multiplier

FIrst, we know that the Marginal Propensity to Consume = 0.8

Based on this, the formula is as follows:

Multipier = -Marginal Propensity to Consume/ (1-Marginal Propensity to Consume)

Multiplier = -0.8/ (1-0.8) = -0.8/ 0.2 = -4

The Tax  Multiplier = -4

Question 2) The resulting change in the equilibrium quantity of real GDP demanded

Change in Demand = Change in Tax x The Tax Multiplier

Change in Demand = $3 billion x -4

= -12

This means that the equilibrium quantity of the real GDP is -12 billion

3 0
3 years ago
A computer assembly firm purchases computer parts at $230 per computer. The
zysi [14]

Answer:

Maybe 60%

Explanation:

8 0
3 years ago
To effectively run her company, Machi applies the ________, a management style the views her firm as an interdependent collectio
Schach [20]

To effectively run her company, Machi applies the Systems viewpoint a management style the views her firm as an interdependent collection of departments.

<h3>What is Systems viewpoint management style?</h3>

Systems viewpoint serves as style of management that help the workers to view the organization as a system that is interconnected which gives them the view that they should work with the management to achieve the goal of the organization.

Therefore ,Systems viewpoint serves as style of management that help the workers to view the organization as a system that is interconnected .

learn more about Systems viewpoint management style at:brainly.com/question/27778740

#SPJ1

4 0
2 years ago
Maura Ruiz has been working in the e-learning industry for over eight years. She is aware of the fact that in this industry, onc
Elanso [62]

Answer:

Participative.

Explanation:

Participative leadership is the process of influencing people to direct their efforts toward the achievement of some particular goal or goals. Participative leadership can be different depending on organization, purpose and situation but there are common patterns in all types:

- Leader always facilitates the conversation.

- Leaders share any information and necessary knowledge for decision-making.

- Leaders encourage others to share their ideas.

- Leader must take all information and solutions by the team and synthesize.

- The leader comes up with best solution based on group information and communicates the solution to the group.

Participative leadership consist of one of the four types of participative decision making.

* Democratic (Participative) – Encourages participation of all members but final decision is made by leader.

* Collective – All decisions are taken by the group and responsibility for the decisions also rest on entire group.

* Autocratic – Possible solutions are brainstormed collectively but leaders are responsible for final decision. Different from democratic as autocratic is goal oriented while democratic is people oriented.

* Consensus – Leader gives up responsibility and control of decision making to the group.

4 0
4 years ago
Other questions:
  • The manager of brick company is given a bonus based on income before income taxes. net income, after taxes, is $5,600 for fifo a
    14·1 answer
  • Emily is considered to be an excellent production manager. however, she tends to give attention only to those aspects of the org
    14·1 answer
  • A magazine subscription is running out and you can renew it by sending $10 a year (the regular rate) or get a lifetime subscript
    15·1 answer
  • Under the mudarabah banking system, when an Islamic bank lends money to a business Multiple Choice it charges that business inte
    11·1 answer
  • Consider the following three minus year project. The initial afterminustax outlay or afterminustax cost is​ $1,500,000. The futu
    12·1 answer
  • Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all cos
    10·1 answer
  • Costco is an example of _______ warehouse. Group of answer choices Hub and spoke system Assortment Spot stock Break bulk
    9·1 answer
  • The spread is the difference between the bid and ask prices difference between the purchase and sale prices commission charged b
    13·1 answer
  • List 3 components of a property management system
    11·1 answer
  • What are the consequences for overs and unders in your store
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!