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Alinara [238K]
3 years ago
9

Three weeks ago, you purchased a July 45 put option on RPJ stock at an option price of $3.20. The market price of RPJ stock thre

e weeks ago was $42.70. Today, RPJ stock is selling at $44.75 a share and the July 45 put is priced at $.80. What is the intrinsic value of your put contract
Business
1 answer:
Anton [14]3 years ago
5 0

Answer:

$25

Explanation:

We can calculate intrinsic value by intrinsic formula

Formula : intrinsic Value = (purchased price- current price) x 100

intrinsic Value = (45-44.75) x 100

intrinsic  Value =  $25

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There are four consumers willing to pay the following amounts for haircuts, and there are four haircutting businesses with the f
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Based on efficiency, the businesses that should cut hair are the A and C; moreover, to meet the demand, each firm will need to offer at least two haircuts.

The supply of a product or the units of a product that is offered to potential customers should always meet the number of real customers. In the same way, the price of the product should meet the price customers are willing to pay.

In this context, the best is that only firm A and C cut hair, this is because their prices per cut ($25 and $30) match the consumers' willingness to pay this includes Lorenzo ($35), Gilberto ($50), Juanita ($40) and Neha ($25).

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Moreover, this implies each firm needs to do at least 2 haircuts to cover all the possible customers.

In the case of firms B and D, the price per cut is high ($40 - $45). Based on this,  they should not cut hair as only a few customers can pay for this service, and this would be inefficient.

Learn more in: brainly.com/question/13225200

4 0
2 years ago
Which sentences describe characteristics of a partnership?
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3 years ago
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You are doing a sales presentation for Ms. Duarte and her son. Ms. Duarte has some cognitive impairment and her son informs you
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Yes he can execute the enrollment for her

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