Answer:
d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.
Explanation:
A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.
A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.
Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid
wherein CMP= Current Market Price
A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.
Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.
<span>A rivalry based on the special interests of different areas is called sectionalism. Each rival has an region or section they possess and they are only interested in scenarios or situations concerning them. The rivalry comes from the fact that both parties may have opposite views on special interests or have had some sort of conflict in the past or present.</span>
Answer:
Option (a) is correct.
Explanation:
This is a case of third degree price discrimination.
There are three types of price discrimination are as follows:
(a) First degree price discrimination
(b) Second degree price discrimination
(c) Third degree price discrimination
In a third degree price discrimination, a company or a firm can charge different prices for different groups of people but charge the same price within the group.
In our case, Dry cleaning companies charge more prices from the women than from the men but they can charge the same price from all the women.
Answer:
Option B is correct
Explanation:
In an indefinitely repeated game, a firm might use a trigger strategy to punish a rival that defects from a cooperative strategy. A trigger strategy threatens other players with a punishment of a worse level if they deviate from the decided action profile.
In this game, players interact repeatedly with each other which might foster cooperation. Repeated games mean a situation in which the same stage game is played at each date.
Answer:
Have little loyalty to their vendors.
Explanation:
Middlemen are intermediaries that buy goods from the producers and sell directly to the consumers. They assist the producers to get different feedbacks about the products from the consumer. Middlemen include wholesalers, retailers, brokers.
In some situations, middlemen increase the prices of various products thereby making it difficult for consumers to purchase, they also have little loyalty to the producers of a particular product they tend to purchase the product when there is high productivity but reject it when productivity reduces.