Answer:
$7.90
Explanation:
Calculation for lower bound on the current value of the European put option
Using this formula
Lower bound current value for European put option = Ke^–rt –So
Where,
Rf represent risk free rate 4%
K represent (Strike price) = $30
(t) represent Time = 1 month = 1/12 year
(So) represent Stock price = $22
Let plug in the formula
Lower bound current value for European put option = [30e^–0.04 x (1/12) ] – 22
Lower bound current value for European put option = $29.90 – $22
Lower bound current value for European put option = $7.90
Therefore the lower bound on the current value of the European put option will be $7.90
Answer:
Proactive
Explanation:
Proactive change is the change that occurs when an organisation makes different modifications to to a work place and methods.
Most organisations carry out proactive changes due to the following reasons:
1) Gaining entry into a new market.
2) Change in the normal business condition.
3) Acquiring operational capabilities.
Proactive changes helps to identify new innovation for the growth of the company, it also allows for flexibility and better internal understanding among employees.
Answer:
Net Income (Loss) = $440,000
Explanation:
Total Fixed Cost = $460000
Total Variable Cost = $11 * 100,000 unit = $1100000
Total Revenue = $20 * 100,ooo unit = $2000000
Contribution Margin = TR- TVC = ($200,000 - $1,100,000) = -$900,000
Net Income = Contribution margin - Total Fixed cost
Net Income (Loss) = $900,000 - $460,000
= $440,000
Answer:
The correct answer is letter "C": People place a higher value on a good if they own it than they do if they are considering buying it.
Explanation:
The Endowment Effect reflects a situation in which people value an object more because they own it. The value they would give the object if they did not have it and were going to purchase it would be lower. This scenario takes place when people give a higher value to their objects because of emotional attachment.