Answer:
a.) The proportional up movement , u, for the currency can be calculated using the following formula:
u = eStd Dev * Square root of t
u = e0.06*square root of 0.25
u = 1.0305
b.) Probability of up movement, p , = (a - d) / (u - d)
where a = ert where r = 0.025, t = 0.25
a = e0.025*0.25 = 1.0063
d = 1 / u = 1 / 1.3050 = 0.7663
p = (1.0063-0.7663) / (1.3050-0.7663)
p = 0.46
1-p = 1-0.46 = 0.54
c) Price of an American Call Option on the currency : we use binomial tree for that , as follows: The amounts below line indicate the option price and figures above line indicate the underlying asset price which is 0.55555
Answer:
These claims are definitely sound due to the fact that whenever any demanded thing is sold privately or illegally, the price of that particular thing is always higher.
Hence, when the drugs are legalized , this means that anyone can purchase them from several location, hence, this will reduce the price of the drug as it will now be common and will increase the quantity demanded of the product as well because the people who once were not able to afford that drug due to being expensive, can now easily afford it.
Good Luck
Hope this clear things up.
Answer:
Corinne Company
Investing Activities Section of the Statement of Cash Flows:
Equipment sales $12
Equipment bought ($58)
Net cash used ($46)
Explanation:
a) Data and Calculations:
Balance Sheet of Corinne company at the end of 2025 and 2024:
2025 2024
Cash $50 $70
Accounts receivable (net) 320 270
Buildings and equipment 200 150
Accumulated depreciation
- buildings and equipment (36) (16)
Land 180 80
Totals $714 $554
Accounts payable $180 $146
Notes payable- bank long term 0 80
Mortgage payable 60 0
Common stock, $10 par 418 318
Retained earnings 56 10
Totals $714 $554
b) other information:
Land and Common Stock exchange
Equipment sold for $12 (cost $10 and book value $8)
Cash dividends $20
c) Equipment account
Beginning balance 150
Equipment sold -8
Balance 142
Closing balance 200
Purchase of new 58 (200 - 142)
Answer:
32
Explanation:
Using Formula
Cost + (Cost*Margin) = Selling Price
Cost is not known...
Cost (1 + Margin) = Selling Price
Cost = Selling Price / 1 + Margin
Here, Margin is 0.45 of cost and selling price is 46.4
Cost = 44.4 / 1.45
Cost = 32
The factors that increase for equity holders when the amount of leverage increases is d. risk.
<h3 /><h3>What does an increase in leverage lead to?</h3>
When there is an increase in the leverage that a company holds, the worry that the company will not be able to pay off the debt also increases.
This leads to more risk and volatility in company stock which would be felt by equity holders.
Remaining part of question:
a. inevitability.
b. certainty.
c. yield-to-maturity
d. risk.
Find out more on the effects of risk on stock at brainly.com/question/11645484.
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