Answer:
I) The difference between the option's price and the value it would have if it were expiring immediately
Explanation:
Time value in options trading simply refers to the part of an option's premium (cost or price) which is attributed to the amount of the time remaining until expiration.
An addition of the option's time value and intrinsic value equals the total premium of an option.
Therefore, we can mathematically state that:
Time Value = Option Premuim(Price) - Intrinsic Value.
The Option Premuim is an amount of money known as the price or cost.
In an exchange for the right granted by the option, an option buyer pays for the premium to an option seller.
Generally, it is seen that the more time that remains until the expiration, the greater the time value of the option. This happens as a result of investors willing to pay a higher premium for more time since the longer time taken to execute contract will be profitable due to a favorable move in the underlying asset.
Also, the lesser time remaining on an option will result in lesser willingness of investors to pay because the probability for profitability is slim.
<span>He is a quality control associate. This employee looks for the best ways to perform a task and makes sure that the company adheres to these quality control measures. The associate also makes sure that the output of the job meets up with company and regulatory standards.</span>
Answer:
Explanation:
The journal entry is shown below:
On July 1
Prepaid Insurance A/c Dr $10,480
To Cash A/c $10,480
(Being prepaid insurance is paid)
On December 31
Insurance expense A/c Dr $2,620
To Prepaid Insurance $2,620
(Being prepaid insurance is adjusted)
The computation is shown below:
= $10,480 ÷ 2 years × 6 months ÷ 12 months
= $2,620
Answer:
the free cash flow is $145,000
Explanation:
The computation of the free cash flow is given below:
The free cash flow is
= cash flow from operating activities - capital expenditures
= $345,000 - $200,000
= $145,000
hence, the free cash flow is $145,000
The same should be considered and relevant
Answer:
The correct answer is b) The production possibilities frontier is usually bowed outward
Explanation: The production possibilities frontier can bow outward (usually), inward (sometimes), or be a straight line (rare).
When it bows outward, it is because the production capacity of a firm or a national economy is growing, and when it bows inward, it is because the economy is shrinking.
