Answer: B) The option premium is greater or equal to its intrinsic value because of the time premium.
Explanation:
The option premium can be calculated by adding the time premium and the intrinsic value. The time premium is the part of the option premium that accounts for the time remaining till the premium matures while the intrinsic value is the difference between the value of underlying asset and the strike price.
As the time premium can be zero but never negative, the option premium can either be greater than its intrinsic value or equal to it. It cannot be lower than it because of the time premium.
Answer:
B. Being unwilling to sell a painting that you already own
Explanation:
Endowment effect is when individuals value things they own more highly than things they don't own. The endowment effect postulates that individuals are unwilling to exchange things they own for something else of equal value.
The amount people would be willing to accept in exchange for the good they own is usually very high compared to the true value of the object they own.
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Answer:
Product development.
Explanation:
The product development stage is the initial part of a product life cycle. Market research is carried out at this stage to determine how well the product will sell in the market.
Product development stage involves the creation of a particular product from an idea and then introducing it into the market. Getting feedback about the product from test users is very important in this stage.
Although the federal reserve had traditionally made discount loans only to commercial banks, in response to the financial crisis in 2008 the fed made primary dealers eligible for discount loans as well.
The U.S. central banking system—the Fed, or the Federal reserve—is the foremost powerful economic establishment within the us, maybe the planet. Its core responsibilities embody setting interest rates, managing the cash offer, and control financial markets.
The Global Financial Crisis of 2008-2009 is widely stated as “The great Recession.” It began with the housing market bubble, created by an overwhelming load of mortgage-backed securities that bundled high-risk loans.
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Answer:
D. recruitment and selection
Explanation:
Based on the various responsibilities and tasks of the Human Resources department, it can be said that the HR department contributes to high performance through recruitment and selection. This human resources task refers to finding and choosing individuals with significant strengths in different aspects that a job role requires in order to have someone filling that role who can provide the company with the most efficient way of achieving their strategic goals and objectives.
