The value of European Put option is 9.
<h3>What is Put option?</h3>
Under derivative securities market an option whose value depend on the underlying item where delivery is not made generally & net settlement done by squaring off the position and depends on the volatility of market.
Put Option is a bearish school of thought where investor thinks the market will decline & the value will be below the exercise price.
In hedging the position of investor make certain not better, therefore the value of put option lies between zero or difference value among the spot price & exercise price with discounting annual market interest rate:
Spot = 70
Exercise = 65
Future Price = 70 × 80% = 56
Rate = 4 % Compounded semi annually.
Value of Put = Spot Price - Exercise Price
= 56 - 65
= 9
Thus the value of put option will be 9 (65-56).
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Answer:
11.5%
Explanation:
WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate)
Answer:
This is a BEHAVIOR- based type of performance appraisal system
Answer: When considering measurement of productivity, manufacturing firm tends to do more in this scenario. In productivity, manufacturing firm operates around the clock in order to meet their target and the demands of the industry
Explanation:
Measurement of productivity
When considering measurement of productivity, manufacturing firm tends to do more in this scenario. In productivity, manufacturing firm operates around the clock in order to meet their target and the demands of the industry, while in service, productivity is still met but functionality only takes place when it's needed or when they are scheduled, in order to avoid failure or for optimal performance.
Quality assurance
In quality assurance, the manufacturing aspect gives a very great attention to this, although the service firm considers it but the manufacturing has to consider the quality of product, quality of items used as all will play a vital role on what kind of result they want.
The highest that the store should sell should be at $9.5 per burrito because if they sell at $9.5, then they will get 1,805,000 for a daily revenue (9.5 x 190,000 burritos). If they sell any higher, then their daily revenue will go down. For example, if they sell at $10 a piece, they can only sell 180,000 (as per the rule that for every $0.50 increase in price, they have to lessen their sales volume by 10,000). 10 x 180,000 is 1,800,000 which is their daily revenue if they sell at $10 which is less than what they can get if they sell at $9.5.
