Answer:
ANSWER = LOWER OF ABOVE ( i.e. POINT 1 AND 4) = $30,000
Explanation:
1) WE ASSUME THAT SUZANNE'S BUSINESS INCOME IS SAME AS QUALIFIED BUSINESS INCOME (QBI) i.e.$150,000.
CALCULATION OF QBI DEDUCTION:-
1) 20% OF QBI (OR TAXABLE INCOME IF LOWER) = $30,000
{$150000*20% = $30,000)
2)50% OF WAGES ($90,000 * 50%) = $45,000
3) 25% OF WAGES + 2.5% OF ASSETS = $22,500
4) GREATER OF POINT 2 AND 3 = $45,000
ANSWER = LOWER OF ABOVE ( i.e. POINT 1 AND 4) = $30,000
Answer:
you should hold <u>76</u> shares of stock per 100 put options to hedge your risk.
Explanation:
Current stock price, S = $85
Risk-free rate of return, r = 5%
Standard Deviation, v = 25%
Exercise price, X = $90
expiration date, t (in years) = 30 days = 1 month = 1/12 = 0.083333 years
The option price (OP) is given by the formula:
![d_1 = [ln(S/X) + (r + v^{2} /2)t]/vt^{0.5}\\d_1 = [ln(85/90) + (0.05 + 0.25^{2} /2)*0.08333]/(0.25*0.08333^{0.5})\\d_1 = -0.6982](https://tex.z-dn.net/?f=d_1%20%3D%20%5Bln%28S%2FX%29%20%2B%20%28r%20%2B%20v%5E%7B2%7D%20%2F2%29t%5D%2Fvt%5E%7B0.5%7D%5C%5Cd_1%20%3D%20%20%5Bln%2885%2F90%29%20%2B%20%280.05%20%2B%200.25%5E%7B2%7D%20%2F2%29%2A0.08333%5D%2F%280.25%2A0.08333%5E%7B0.5%7D%29%5C%5Cd_1%20%3D%20-0.6982)
Using the pro-metric calculator for the cumulative normal distribution:
N(-d1) = N(- (-0.6982)) = N(0.6982) = 0.75747
N(-d2) = N(-(-0.7704)) = N(0.7704) = 0.77947
![OP =[ 90e^{(-0.05*0.08333)} * 0.77947] - (85*0.75747)\\OP = 5.48](https://tex.z-dn.net/?f=OP%20%3D%5B%2090e%5E%7B%28-0.05%2A0.08333%29%7D%20%2A%200.77947%5D%20-%20%2885%2A0.75747%29%5C%5COP%20%3D%205.48)
Note that N(-d₁) = 0.76
This means that 76/100 (i.e to hedge your risk, you should hold 76 per 100 put options )
Answer:
False
Explanation:
Its an emergency theres no time to wait.
Answer:
b.
Explanation:
Ownership concentration refers to the internal governance mechanism where the owners of the company/firm/business (shareholders) can control and thus influence the direction that the company takes in order to protect their own interests. Therefore the ownership concentration is determined by both the number of stockholders and the parties they represent.
