<u>Answer-</u>
<em>A. strong negative correlation.</em>
<u>Solution-</u>
<u>Direction of a relationship</u>
- Positive- If one variable increases, the other tends to also increase. If one decreases, the other tends to also. It is represented by positive numbers(i.e 0 to 1).
-
Negative- If one variable increases, the other tends to decrease, and vice-versa. It is represented by negative numbers(i.e 0 to -1)
<u>Strength of a relationship</u>
- Perfect Relationship- When two variables are linearly related, the correlation coefficient is either 1 or -1. They are said to be perfectly linearly related, either positively or negatively.
- No relationship- When two variables have no relationship at all, their correlation is 0.
As in this case, correlation coefficient was found to be -0.91, which is negative and close to -1, so it is a strong negative correlation.
The maximum possible profit = $7068
For given question,
One Microsoft July $72 put contract for a premium of $1.32
The payoff arise from put option is max (K - S, 0) - P
Now it would be maximum at S = 0
And, the maximum payoff is
K - 0 - P
= K - P
= 72 - 1.32
= $70.68
We assume that for each and every contract the number of shares is 100
So, the maximum profit gained from this strategy is
= $70.68 × 100 shares
= $7068
The maximum profit that will be gained from this strategy is $7068
Therefore, the maximum possible profit = $7068
Learn more about the profit here:
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Answer:
$1151.4
Step-by-step explanation:
let americans spend $a in 2014
(1+4.8%)a=1180
104.8%a=1180
a=1151.4 (rounded off to the nearest tenths)
Answer:
$9.3 million
Step-by-step explanation:
Given that the company profit increases by 9% yearly from 2005.
Using the exponential growth formula;
A = P(1+r)^(t) .....1
Where;
A = final amount/value of profit
P = initial amount/value = $6.6 million
r = growth rate yearly = 9% = 0.09
t = time of growth in years = 2009 - 2005 = 4 years
Substituting the values;
A = 6.6(1+0.09)^(4)
A = 6.6(1.09)^(4)
A = 9.3164386 million
A = $9.3 million
The companies profit in the year 2009 to the nearest 10th of $1 million is $9.3 million
