Break-even price of call option = Exercise price + Premium Paid
So,
Break-even Stock Price = 40 + 4.50 = $44.50
A stock market, stock market, or stock market, is a collection of buyers and sellers of shares (also called stocks) that represent ownership of a company. This includes securities listed on public stock exchanges and stocks that trade only privately. B. Private company shares are sold to investors through equity crowdfunding platforms. Investments are typically made with an investment strategy in mind.
shares can be classified according to the country in which the company is located. For example, Nestlé and Novartis are based in Switzerland and traded on the SIX Swiss Exchange, so they can be considered part of the Swiss stock market. ) on the U.S. Stock Exchange.
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Answer:
The correct answer is "decrease".
Explanation:
This would cause the current demand for computers to decrease because consumer expectations would be displaced in the long run by waiting for computer prices to decrease before going to buy them. This behavior is due to the advance announcement of the manufacturers.
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Answer:
True
Explanation:
The reason why every business exists is to make a profit. Hopefully businesses will be able to make a profit by selling products or services that satisfy the needs of their customers. The problem with higher profits is that they are always associated with higher risks, and business owners and investors are risk averse.
Business owners and managers will continually search for ways to increase their profits while keeping the risks as low as possible. This includes choosing organizational layouts and forms that might help them increase their profits while reducing risks or at least keeping them under a certain level.
Explanation:
Qualitative analysis;
The given case belongs to real options in finance terms where the project offers tangible assets in comparison to financial instruments.
The project is of real option. The value of any real option would be more when:
- the project under consideration is very risky
- With respect to timing option value, there is time to change the decisions
Having said that, since project is risky and investment can be made later, hence it would be more feasible to wait and observe
