Answer:
Short 1.5 shares
Explanation:
Given data :
Risk free rate = 3%
current price ( market price ) = $25
Delta of 1-year at money European call on MCD = 0.5
<u>Determine how many shares of MCD John should either Long or short to achieve a delta-neutral </u>
use the relation below
4 * 0.5 + 1 ( 0.5 - 1 ) + x = 0
x ( number of shares ) = - [ 4 * 0.5 + 1 ( 0.5 - 1 ) ]
= - 1.5 shares
negative ( - ) means MCD should short 1.5 shares
Answer:
A. Ill-conceived goals
Explanation:
Ill-conceived goals refers to setting of goals or incentives in order to promote a desired behavior whereas indirectly encouraging a negative one.
When setting ill-conceived goals, the unintended effects of these goals should duly be taken into consideration.
The answer is money order because it is an instrument used by a post office, express company and mostly by banks indicating that the payee may request and receive the amount indicated on the instrument or the money order. The money order is a trusted method of a payment than issuing a check because sometimes we get a bouncing check. A money order is a payment order for the amount of money you borrow in the banks or any express company that uses this instrument. And It is required that the funds should be prepaid for the amount shown in it.
The price system is an important component of the market because it coordinates the activities of producers, consumers, and owners of resources.
The answer to this question is option c. In economics the price system can simply be described as the way of organizing economic activities.
In order to do this, it coordinates the decisions of the buyers, the suppliers or the producers, and the owners of productive resources.
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Based on the calculation below, incremental after-tax operating cash flow is $675,000
<h3>How to calculate incremental after-tax operating cash flow</h3>
This can be calculated as follows:
Profit before interest and tax = Revenue - Operating costs – Depreciation = $1,000,000 - $200,000 - $300,000 = $500,000
Operating income = Profit before tax – (Profit before tax * Tax rate) = $500,000 – ($500,000 * 25%) = $375,000
Therefore, we have:
Incremental after-tax operating cash flow = Operating income + Depreciation = $375,000 + $300,000 = $675,000
Learn more about cash flows here: brainly.com/question/18301011.
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