The intrinsic value of a call option can be calculated by subtracting the strike price from the market price ($108-$110=?). Therefore the intrinsic value of John's call option is $-2 or 0.
Answer:
whether or not to purchase a new machine for the production line
Explanation:
Capital budgeting decision is the process by which a company sets aside money for the purchase of capital assets such as new machinery, new plants, research and development, and new product.
Capital budgeting is considered to be both a financial decision and an investment decision. Apart from cost incurred by making a purchase, the company considers the future cash flows the capital asset will generate.
Purchasing a new machine for the production line is a capital budgeting decision
Answer: Person-Vocation fit
Explanation: According to the question, Borris lacks Person-Vocation fit as he isn't fully satisfied in his current field of employment as a receptionist, he is aspiring for a better more Noble job profession.
Although Boris has no issue with his current company of employment, he is not satisfied with his job.
Answer:
1. 11.90
2. 23.79
Explanation:
How Long Does It Take To Double Your Money?
A=P(1+r/100)^n
where
A=future value($2x say)
P=present value($x say)
r=rate of interest
n=time period.
SOLUTION
A=P(1+r/100)^n
2x=x(1+6/100)^n
Divide both side by x
2=(1+6/100)^n
2=(1.06)^n
Taking log on both sides;
log 2=n*log 1.06
Making n subject of the formular
n=log 2/log 1.06
=11.90 years(Approx).
How Long Does It Take To Quadruple Your Money?
We use the same formula:
A=P(1+r/100)^n
where
A=future value($4x say)
P=present value($x say)
r=rate of interest
n=time period.
SOLUTION
A=P(1+r/100)^n
4x=x(1+6/100)^n
Divide both side by x
4=(1+6/100)^n
4=(1.06)^n
Taking log on both sides;
log 4=n*log 1.06
Making n subject of the formular
Hence n=log 4/log 1.06
=23.79 years(Approx).
Answer: Option (B) is correct
From the given options, the following statements is most suitable:<em> Both socialism and communism, achieves equal distribution of income and wealth, but in communism, the state takes more control over individual's lives.</em>
Communism can be referred to as a political and economic principle that aims to reinstate private economy with public ownership and thereby gaining a control of means of production and the resources of a state.
Socialism can be referred to as a social and economic principle that aims for public rather than private ownership. According to this perception, individuals do not work in desolation but live in cooperation.