Answer:
The price of the put-option on the same stock with the same strike price is $3.75.
Explanation:
To find the price of the put option on an underlying asset given the price on the call option's price for the same underlying asset with the same strike price is given, we apply put-call parity model.
Put call parity model: p = K x e^(-rT) + c - St .
in which: p: put option's price;
K: underlying asset's strike price;
r: risk-free rate;
T: time to maturity denominated in year;
c= call option's price;
St = spot price of underlying asset .
So, p = 50 x e^(-0.06 x 1/12) + 1 - 47 = $3.75 .
Answer:
Model system
Explanation:
Model system of DSS use complex financial, simulation, optimization or multi-criteria models to provide decision support. Model-driven DSS use data and parameters provided by decision makers to aid decision makers in analyzing a situation, but they are not usually data intensive, that is very large data bases are usually not need for model-driven DSS
Answer:
Explanation:
Workings
Product A
Selling price 410,000
Income 1 410,000
Further processing
Incremental cost 290,000
Product B 5900 102 601,800
Product C 11,900 60 714,000
Total revenue 1,315,800
Incremental cost 290,000
Income 2 1,025,800
Income on further process , that is if an additional cost of 290,000 is spent on the initial cost that generated the sales of 410,000 = 1,025,800
Incremental income on further processing =1,025,800-410,000 = 615,800
Therefore , it is advised that it should be processed further.
In terms of evaluating balance sheet, the two primary
questions that are being formulated are the following;
-
The assets are financially secure or stable
-
The firm has assets that are sufficient and are
short term in means of having debts that are only short and temporary.
Answer:
D. A credit manager issues credit cards to himself and a staff accountant in the accounting office, and when the credit card balances are just under $1,000, the staff accountant writes off the accounts as bad debt. The credit manager then issues new cards.
