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Dafna11 [192]
3 years ago
15

A call option on Jupiter Motors stock with an exercise price of $80 and one-year expiration is selling at $2. A put option on Ju

piter stock with an exercise price of $80 and one-year expiration is selling at $.5. If the risk-free rate is 8% and Jupiter pays no dividends, what should the stock price be?

Business
1 answer:
creativ13 [48]3 years ago
7 0

Answer:

$70.85

Explanation:

Please see attachment.

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Of fifo or lifo, which method would produce the more favorable cash flow? fifo, because of it produces lower income tax expense
quester [9]
FIFO stands for First In First Out and LIFO stands for Last In First Out.
Answer: LIFO produces more favorable cash flow because LIFO PRODUCES LOWER INCOME TAX EXPENSE.
During inflation, LIFO approach is adopted for tax benefits. With the rise in prices, LIFO produces higher cost of sold amounts of goods.
4 0
3 years ago
You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving th
lara [203]

Answer:

E. You should accept the $200,000 because the payments are only worth $195,413 to you today

Explanation:

We solve for the presnet value of an annuity of 20 year of $1400 at 0.5% discount rate

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 1,400.00

time 240 (20 years x 12 month per year)

rate 0.005 (6% / 12 monhts = 0.5% = 0.5/100 = 0.005)

1400 \times \frac{1-(1+0.005)^{-240} }{0.005} = PV\\

PV $195,413.0804

7 0
3 years ago
Why is it important to look at external sources of information when exploring product and service information?
kolbaska11 [484]

Internal data is from within the company, like operations and sales figures. External data comes from looking at the market, such as consumer trends, and marketing research. It is important to consider external data because it gives companies a better picture of their customers and competitors.

5 0
3 years ago
The Cole Beverage Company (CBC) has a soft drink product that has a constant annual demand of 3,600 cases per year. A case of th
skad [1K]

Answer:

a. 480

Explanation:

The computation of the economic order quantity is given below:

EOQ = \sqrt{\frac{2\times annual \ demand \times ordering\ cost }{carrying \ cost}}  \\\\= \sqrt{\frac{2\times 3600\times \$32}{\$1} }

= 480 units

The carrying cost could be determined below:

= $4 × 25%

= $1

hence, the carrying cost is $1

Therefore the economic order quantity is 480

Thus, the correct option is a.

7 0
2 years ago
The northern vision of the Reconstruction-era southern economy included all of the following EXCEPT:
IceJOKER [234]

Answer:

A. the labor system would be as close to slavery as possible, thereby assuring high productivity.

Explanation:

The Reconstruction - era of northern version was clearly impacted on Slavery.

As the main objective of such reconstruction was to remove slavery at maximum. And with the end of such reconstruction era there was an end to slavery.

Accordingly, new constitutional rights to people earlier under slavery were provided.

Now, therefore, statement a in the given instance which provides for close relation between labor system and slavery is incorrect.

Incorrect Statement is:

A. the labor system would be as close to slavery as possible, thereby assuring high productivity.

4 0
3 years ago
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