Answer:
Calandra should buy call on Canadian Dollars on C$ $0.7000 $0.00049
Explanation:
If she is expecting the Canadian dollar to appreciate versus the United States Dollar in the future, she would buy a calla that gives her the right to buy Canadian Dollars at a lower price than hers future cost projection.
Answer: Production and consumption occur simultaneously
Explanation:
Services are intangible quantities that possess value and can be traded, services cannot be stored therefore it most times is produced and consumed at the same time.
The statement that holds true for the American Option is (A) Put-call parity provides an upper and lower bound for the difference between call and put prices
Explanation:
According to the Put-call parity concept when we hold the short European put and long European call of similar class the return delivered is same as holding one forward contract of the same underlying asset, that has the same expiration, forward price and which is equal to the strike price of the option
In financial management put–call parity concept is used to define the relationship that exist between the price of a European call option and European put option, and both of them have identical strike price and expiry
The formula used for calculating put call parity is
c + k = f +p
where (c) call price plus the (k) strike price of both options is equal to the futures price(f) plus the put price(p)
Answer:
Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes its wheat taste better and have fewer calories than all other wheat offered in the market, the wheat market would become less competitive because the products would no longer be similar in the wheat market- Option c.
Explanation:
Option c is the correct answer- the products would no longer be similar in the wheat market, the reason being that people with different taste preferences would prefer either of the two kinds of wheat available in the market, therefore making them less concentrated.
Answer:
Depreciation
Explanation:
This is basically a reduction in value of an asset over period of time mainly because of wear an tear.
