Answer:
B. The service can be transported
Explanation:
Service relates to providing an intangible form of work which is performed for others to yield a benefit or satisfy a want. An important aspect of a service being, it is intangible or something which cannot be touched or felt.
For example, service provided by a doctor or services provided by a waiter at a hotel. Services are consumed, the moment they are produced. For instance, services of a waiter arise when a customer enters the hotel and a want for the service is created.
Services cannot be resold as for instance the receiver performs the same service to another, the provider would change.
As services are intangible, they cannot be stored since they arise only when a want arises and are consumed immediately.
Thus, the correct option is B. The service can be transported.
Answer:
The investment advisory firm which employs the investment adviser representative (IAR).
Explanation:
FINRA's rules specifically state that before any transaction, the IAR must have a signed power of attorney. The IAR cannot start trading or operating with the client's money until he/she has received a signed written power of attorney from the client. Only after the signed power of attorney has been given tot eh IAR, can he/she act on discretionary basis.
If the IAR is not a registered broker-dealer, then NASAA rules state that oral agreements are valid for up to 10 business days, but the IAR must have a written authorization after that time expires. I.e. the IAR could buy the stocks, but he/she was not authorized to sell them. So any loss is responsibility of the firm that employs the IAR.
Answer:
$13.64
Explanation:
Given:
Exercise price,X = $100
Current price = $100
Value when price is up, uS = $120
Value when price is down, dS= $80
Risk free interest rate = 10%
First calculate hedge ratio, H:
Where,
Cu = uS - X
= 120 - 100
= $20
A risk free portfolio involves one share and two call options.
Find cost of portfolio:
Cost of portfolio = Cost of stock - Cost of the two cells.
= $100 - 2C
This portfolio is risk free. The table below shows that
_______________
Portforlio 1:
Buy 1 share $80; Write 2 calls: $0; Total: ($80 + 0) $80
____________________
Portforlio 2:
Buy 1 share: $120; Write 2 calls: -$40; Total: ($120 - $40) $80
Check for oresent value of the portfolio:
Present value 
Value = exercise price - value of option
$72.73 = $100 - 2C
Find call option, C
Call option's value = $13.64
Answer:
d. $146.27
Explanation:
For computing the interest earned, first we have to calculate the future value which is shown below:
Future value = Present value × (1 + rate)^number of years
where,
Present value = $2,750
Rate = 5.25% ÷ 2 = 2.625%
Number of years = 1 year × 2 = 2 years
So, the future value
= $2,750 × (1 + 2.625%)^2
= $2,750 × 1.0531890625
= $2,896.27
Now the interest earned would be
= $2,896.27 - $2,750
= $146.27
Answer:
$16.67
Explanation:
Data provided in the question;
Dividend to be paid next year, D1 = $2
Expected growth rate of dividend, g = 4% = 0.04
Required rate of return on the investment = 16% = 0.16
Now,
Price to be paid for the stock = 
or
Price to be paid for the stock = 
or
Price to be paid for the stock = $16.67
