Answer:
p = $2.51
Explanation:
Given:
- D = $0.50
- Stock price: $29 (s)
- Interest rates: 10%.
- Strike price of $30 : $2 (c)
To find the the price of a European put option, we use here pit call parity that is
:
c - p = s - k 
- D
<=> p = c - s + k + D
<=> p = 2 -29 + 30
+ 0.5
<=> p = $2.51
Hope it will find you well
Answer:
False
Explanation:
Rather, gain or loss on the sale of an asset can be calculated as the difference between sale price and net book value (NBV).
The net book value can be calculated by accumulated depreciation from the purcahse price of the assets.
Therefore, gain or loss on the sale of an asset can be calculated using the following fomula:
Gain (loss) on the sale of an asset = Sales price - Net book value
Answer:
Because :- CEOs & CFOs can have significant impacts throughout the entire business, & the type of reward plan will encourage the CFOs to work in a more rational manner.
Explanation:
CEOs & CFOs are a part of upper level of management of an organisation. Effectiveness & Efficiency of their managerial skills is very crucial to management of company. So, to encourage proper management of companies by senior managers, they can be incentivised by mix of fixed & variable salary structure. The variable component of salary as per company performance under CEO or CFO, positively motivates them to improvise their performance, which subsequently improves company performance.
Answer:
False
Explanation:
If the quantity of financial capital supplied is equal to the quantity of financial capital demanded then, the national savings and investment identity is written as S + (M - X) = I + (G - T)
Where S = Private sector saving.
I= Private sector investment.
G= Government spending.
T=Government income, i.e. tax.
X =Exports.
M=Imports.
Answer:
C
Explanation:
A rational consumer would keep consuming as long as he continues to derive satisfaction from consuming one more unit of a product..
For example, if you have eaten two hamburgers and you are contemplating whether to consume one more unit of hamburger or not. one of the factors you would consider is if you would derive a marginal benefit from one more consumption. If you would, you would consume one more hamburger and if you would not, you won't consume the hamburger
