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juin [17]
3 years ago
8

The price of Cilantro, Inc., stock will be either $70 or $92 at the end of the year. Call options are available with one year to

expiration. T-bills currently yield 5 percent. Suppose the current price of the company's stock is $81. What is the value of the call option if the exercise price is $66 per share?
Business
1 answer:
hjlf3 years ago
6 0

Answer:

$18.14

Explanation:

Value of the call = Stock price - Present value of the strike (exercise price)

Stock price = $81

Present value of the strike=66

T-bills yield 5 percent.

$81 – $66/1.05

=$81-62.8571

= $18.14

Therefore tthe value of the call option if the exercise price is $66 per share will be $18.14

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In a planned economy what predicts the demand of goods and services and coordinates the appropriate level of production of these
CaHeK987 [17]

Answer:

The government

Explanation:

In the command economy, the government makes all economic decisions in the country. The command economy is also known as the command centrally planned economy. A central authority, which is the government decides what products will be manufactured, and they will be distributed.

The government makes economic plans for the country that outlines the level of production. It allocates resources required for production as per the plans. The government though its different agencies, owns the factors of production.

8 0
3 years ago
An example of an ad valorem tax is
MA_775_DIABLO [31]
Municipal Property Taxes 
7 0
3 years ago
Which of the following items is not needed to prepare a sales budget by product line?
Illusion [34]

Answer:

D) Expected purchase price of each product.

Explanation:

According to my research a "Sales Budget" is a companies estimation of sales for any given financial period of the year. This being the case we can say that the item that is NOT needed would be the expected purchase price of each product. This is because they already have the overall expenses for that period, and in a sales budget they just need to calculate the selling price and units expected to sell in order to estimate the profit.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the average cost per unit of a produ
Naddika [18.5K]

Answer:

\arge\boxed{\large\boxed{\$ 117,788}}

Explanation:

Assume the <em>cost</em> equation to be:

                Cost(x)=Fixed\text{ }costs+Variable\text{ }costs\\\\Cost(x)=A+Bx

Where x is the number of units (wooden baseball bats) produced.

The <em>average cost per unit of production level</em> is the total cost divided by the number of units produced:

              Average\text{ }cost(x)=Cost(x)/x\\\\Average\text{ }cost(x)=(A+Bx)/x\\

You are given that the <em>average cost per unit of a production level of 7,700 bats is $14</em>, then:

             14=(A+7,700B)/7,700

You are also given that the <em>fixed costs</em> are <em>$22,500</em>, thus A = 22,500. Hence, you can substitute the value of A in the previous equation and find B:

              14=(22,500+7,700B)/7,700\\\\14\times 7,700=22,500+7,700B\\\\107,800-22,500=7,700B\\\\85,300/7,700=B\\\\B=11.08

Now you can complete the cost equation:

             

               Cost(x)=\$ 22,500+11.08x

And to predict the total costs for 8,600 bats you must subsitute x with 8,600 in the previous equation:

             Cost(8,600)=\$ 22,500+11.08(8,600)=\$ 117,788

5 0
3 years ago
What tax applies to investments and other personal property?
shusha [124]
This one would be IRS. 
For example, if<span> you end up paying for personal property taxes to your local government, the IRS would allow you to claim a deduction for it on your federal tax return~</span>
8 0
3 years ago
Read 2 more answers
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