Answer:
Explanation:
The time (T) = 6 months = 6/12 years = 0.5 years
Interest rate (r) = 6% = 0.06
The stock is priced [S(0)] = $36.50
The price the stock sells at 6 months (
) = $3.20
European call (K) = $35
The price (P) is given by:

The price of a 6-month, $35.00 strike put option is $1.65
Answer: Controlling
Explanation:
Controlling is a management process which involves comparing the outcome of an organization's processes to the targets set for those processes beforehand, and taking corrective measures in case the outcome is deviating from the set targets. For example, a manager of a business running at a loss, can identify the cause of the loss and find ways of correcting the negative outcome.
Answer:
Each company drills two wells and experiences a profit of $22 million.
Explanation:
If each company acts independently and drills two oil wells each they will have a total of 4 wells each worth (60 million ÷ 4= $15 million.
Each company will have two oil wells which equals (2* 15 million = $30 million)
But each company incurs cost of $4 million per well. That is total cost of $8 million.
Therefore the profit for each company will be $30 million - $8 million= $22 million
Answer:
1. Positive Externality ; 2. Negative Externality ; 3. Positive Externality.
Explanation:
Externalities are benefits or harms to other parties , without payment received or made for them respectively.
Positive Externalities : Externalities positively effecting others. Eg-Education
Negative Externalities : Externalities positively effecting others . Eg-Pollution.
1. Bridal Shop's signage facelift creates benefit for other strip mall businesses also (better business visibility), without former receiving money & latter paying money.
2. Local church celebration creates benefit for all attendants (recreational benefit) ,without former receiving money & latter paying money.
3. Local School bus ramp construction creates harm for commuters of that area (traffic inconvenience) , without former paying money & latter receiving money