Answer:
The value of the call option today is $10.19
Explanation:
The value of the call option under the two state stock price model is calculated by calculating the present value of the expected return on the stock based on the price increase and price decrease and the probability of such change in prices. It assumes the price to be such that the price is arbitrage free price.
The return on stock is 131 - 109 = 22 if the prices rise to $131. The option will be exercised in this case.
The return on stock will be 0 in case prices go down to $87 as the option will not be exercised and it will expire worthless.
The expected return is = 22 * 0.5 + 0 * 0.5 = $11
The present value of the return is 11 / (1+0.08) =$10.185 rounded off to $10.19
Thus, the price of the call option today is $10.19
Answer:
The law gives him the right to protect himself from this behavior
Explanation:
The Civil Right Acts' prohibition title VII gives protection against discrimination to workers from different ethnic groups in the work place. This kind of discrimination can cause national-origin lawsuit in title VII. But it is necessary that if Mohans job involves speaking to the public that he speaks some English.
Risk is measured by the probability of loss. If one invested everything he had in 1 specific stock, and that stock drops in a major way, then he loses a lot. This is a high-risk setup. On the other hand, if one divides his portfolio into several stocks, then his risk is much lower, because it is less likely that all those stocks drop at the same time. So this is how mutual funds diversify their portfolios to lower risk, and the right answer is C.
sorry which language I can't help
Answer:
cash 1,000 debit
inventory 2,000 debit
land 5,000 debit
note payable 3,000 credit
Krug capital Account 5,000 credit
Explanation:
The land and inventories will be accepted at his market value.
Along with cash this are assets which enter the partnership so they are debited.
The note payable decreases the Krug capital contribution. It is credited.
Krug capital account balance will be to complete the entry and make debit = credit.
