Answer:
a.) The proportional up movement , u, for the currency can be calculated using the following formula:
u = eStd Dev * Square root of t
u = e0.06*square root of 0.25
u = 1.0305
b.) Probability of up movement, p , = (a - d) / (u - d)
where a = ert where r = 0.025, t = 0.25
a = e0.025*0.25 = 1.0063
d = 1 / u = 1 / 1.3050 = 0.7663
p = (1.0063-0.7663) / (1.3050-0.7663)
p = 0.46
1-p = 1-0.46 = 0.54
c) Price of an American Call Option on the currency : we use binomial tree for that , as follows: The amounts below line indicate the option price and figures above line indicate the underlying asset price which is 0.55555
Answer:
4
Explanation:
receivable turnover = net credit sales / average inventory
avarage iventory = ($761000 + $841000) / 2 = $801,000
$3,204,000 / $801,000 = 4
<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:
the future value is $21,534.44
Explanation:
The computation of the future value is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
where,
Present value is $15,000
The Interest rate is 7.5%
And, the number of the year is 5 years
Now put these values to the above formula
So, the future value is
= $15,000 × (1 + 0.075)^5
= $21,534.44
Hence, the future value is $21,534.44
