Answer:
$1.70
Explanation:
Given that,
Current stock price= $40
Strike price= $39
After a period of one month, two states will be achievable.
- First state
Stock price=$42
Option value= 42-39
=$3
- Second state
Stock price= $38
Option value= 0
Upmove size of first state is
U= 42/40 =1.05
Downmove size of the second state is
D=38/40=0.95
The values given for the upside probability is given as:
Rf= 0.08
t= 1/12
πu = 0.567
The downside probability is equal to:
= 1 - 0.567
= 0.433
Therefore, the present value of option is:
(0.567 × 3) + (0.43 × 0) / e^0.08 × 1/12
= 1.70
Thus, the value of a one-month European call option is $1.70
A focus group is a common qualitative research technique used by companies for marketing purposes. It typically consists of a small number of participants, usually about six to 12, from within a company's target market. So yes your right
Answer: Financial disadvantage of -$29,800
Explanation:
If extra large part is produced inhouse;
= Direct materials + direct labor + Variable manufacturing overhead + Supervisor's salary + opportunity cost of making other products
= ((4.7 + 9.3 + 9.8 + 5.2) * 22,000) + 34,000
= $672,000
Cost if bought outside;
= 31.90 * 22,000
= $701,800
Financial advantage ( disadvantage) = 672,000 - 701,800
= -$29,800
Answer
329,245.19
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
The correct answer is D
Explanation:
The compensatory stock option is the option which is given or provided to the employee, providing the ability for purchasing the certain number of the shares of the company at the price which is the pre- determined one along with the pre- determined range of the date.
And the stock options which have the outstanding account that should be decreased or reduced at the date of exercise.
