Answer:
B. The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%.
Explanation:
Given
Trading price = $20
Exercise price of call option = $20
Call option price = $1.50
Price increment = 10% to $22
It's not be noted that the discounted present value of a price of an option is represented by its expected payoff.
An increment of $2 in stock price attracts an increment of more than $2 in the payoff option.
Having highlighted that, it's also to be noted that the increment in expected payoff will be by an amount less than $2 and same with present value because the possibility is less than 1. So, the price of the option will increase by less than $2.
Moving to the percentage increase;
This will be larger than 10%.
This is because when stock price increases by 10%, the value of the option will increase by more than 10%.
The answer to this question is Variable cost.
As the level of production increase , the total variable cost is increased and vice versa.
Examples of variable cost are the cost of sugar in condensed milk factory, the cost of leather in bag manufacturing, the cost of coffee beans in starbucks, etc.
quizlet calaf’s drillers erects and places into service an off-shore oil platform on january 1, 2021, at a cost of $10,000,000. calaf is legally required to dismantle and remove the platform at the end of its useful life in 10 years. calaf estimates it will cost $1,000,000 to dismantle and remove the platform at the end of its useful life in 10 years. (the fair value at january 1, 2021, of the dismantle and removal costs is $450,000.) prepare the entry to record the asset retirement obligation.
Oil Platform 450,000
Asset Retirement Obligation 450,000
What is asset retirement obligation?
An asset retirement obligation is a contractual requirement for the retirement of a tangible long-lived asset, the timing of which may depend on the occurrence of a future event outside the control of the entity bearing the obligation.
Therefore,
Oil Platform 450,000
Asset Retirement Obligation 450,000
To learn more about asset retirement obligation from the given link:
brainly.com/question/14298631
Answer:
Option (c) is correct.
Explanation:
Variable manufacturing costs = $30000
Variable selling and administrative costs = $14000
Fixed manufacturing costs = $160000
Fixed selling and administrative costs = $120000
Investment = $1700000
ROI = 50%
Planned production and sales = 5000 pairs
ROI = Investment Value × ROI Rate
= $1,700,000 × 50%
= $850,000
Desired ROI per Pair of Shoes :-
= ROI ÷ Planned production and sales
= $850,000 ÷ 5000 pairs
= $170
