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Taya2010 [7]
3 years ago
11

Mark and Rasheed are at the bookstore buying new calculators for the semester. Mark is willing to pay $75 and Rasheed is willing

to pay $100 for a graphing calculator. The price for a calculator at the bookstore is $65. How much is Mark's individual consumer surplus?
Business
1 answer:
Romashka [77]3 years ago
4 0

Answer:

Mark's individual consumer surplus is $10.

Explanation:

Mark and Rasheed are at the bookstore buying new calculators for the semester.

Mark is willing to pay $75 and Rasheed is willing to pay $100 for a graphing calculator.

The price for a calculator at the bookstore is $65.

The consumer surplus is the difference between the maximum price that a consumer is willing to pay and the price he actually has to pay.

Mark's individual consumer surplus

= Price mark was willing to pay - Price he actually has to pay

= $75 - $65

= $10

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Generally, the payment of an accelerated death benefit is _______ to a recipient if the benefit payment is qualified.
IrinaK [193]

The correct answer is Tax free.

An Accelerated Death Benefit (ADB) enables the holder of a life insurance policy to obtain a portion of the death benefit from the insurer before passing away. The policyholder must typically have a terminal illness with a life expectancy of two years or fewer.

<h3>How are benefits for hastened death paid?</h3>

A lump amount may be provided as part of some hastened death benefits. With a benefit for a terminal disease, this happens more frequently. Payments for chronic illnesses are more frequently made. According to Schelhaas, some accelerated death benefit riders are simple because they pay a specific portion of the death benefit.

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8 0
2 years ago
Consider a 11-period binomial model with r=1.02r=1.02, s_0 = 100s
FromTheMoon [43]

The  value of a European call option on the stock with strike k=102k=102 is: 2.03529 and the amount of dollar to invest in the cash account is $28.694

<h3>European call option</h3>

Given:

R=1.02

S0 = 100

u=1/d= 1.05

Strike(k) = 102

First step

Upside Price = u × S0

Upside Price = 1.05 × 100

Upside Price = 105

Downside Price = S0/u

Downside Price= 100×1/1.05

Downside Price= 95.238

Upside Payoff = upside price - strike rate

Upside Payoff =(105 - 102)

Upside Payoff = 3

Second step

Upside probability=(r - q) / u - d

Upside probability=1.02- (1/1.05)÷ 1.05- (1/1.05)

Upside probability=0.0676190/0.0976190

Upside probability=0.692


Probability of downside = 1 - p(upside)

Probability of downside = 1 - 0.692

Probability of downside = 0.30731722

Third step

European call option=[0.692×3+0.30731722×0]×1/100

European call option=2.03529

Let B represent the Dollar to invest

105D -1.05B=3

95.238D-1.02B=0

Solving for B

B=$28.694

Therefore the  value of a European call option on the stock with strike k=102k=102 is: 2.03529 and the amount of dollar to invest in the cash account is $28.694

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4 0
2 years ago
On September 1, 2021, Middleton Corp. lends cash and accepts a $2,100 note receivable that offers 8% interest and is due in six
Ulleksa [173]

Answer:

Interest revenue = $56

Explanation:

Interest on note receivable calculation:

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Given,

Note rwceivable amount = $2100

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Number of period = 6 month

Putting the values into the formula we can get

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= $168 × (6/12)

Interest for the notes Receivable for 6 months = $84

The note receivable will be matured on March 1 2022. But we have to calculate the interest for 2021. Therefore Middleton Corp. Will report interest revenue = $84 × (4/6)

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3 years ago
At the green restaurants corporation, an employee survey reports efforts to increase worker satisfaction by redesigning jobs led
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What happens when you move a section header
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Nothing really just the header moves where ever you move it to lol
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4 years ago
Read 2 more answers
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