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Lelu [443]
3 years ago
6

What is oligopoly?

Business
1 answer:
Elis [28]3 years ago
3 0
The second one is the answer
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You are attempting to value a call option with an exercise price of $109 and one year to expiration. The underlying stock pays n
Ivenika [448]

Answer:

The value of the call option today is $14.29

Explanation:

The two-state stock pricing model is one that prices are based on the assumption that there is no arbitrage profit opportunity as well as the fact that the call option's value will be the present value(PV) of the expected future winnings for long call.

Now, value of the call option if the prices go up will be;

142 - 109 = $32

While if the prices go down, it will be;

76 - 109 = -$33

The call option in this case can only be utilized when the market value exceeds the exercise price.

Therefore, the expected winnings value after one year will be;

Value after one year = (32 × 0.5) + (0 × 0.5)

Value after one year = $16

We used 0 in the multiplication because the call wouldn't be utilized for when the prices go down.

one year from now the long call can be expected to earn $16 .

Thus, today the present value of this amount will be the price of the call option if we take into cognizance that here will be no arbitrage profit opportunity.

With risk-free rate of interest is 12%, we have;

PV = 16/1.12 = $14.29

3 0
3 years ago
You are evaluating a potential purchase of several light-duty trucks. The initial cost of the trucks will be $194,000. The truck
pantera1 [17]

The after-tax cash flow associated with the sale of equipment is $299,325.

<h3>What is an initial cost?</h3>
  • The initial cost is the typical cost of buying or producing the goods you have on hand.
<h3>What is an operating cost?</h3>
  • Operating costs, often known as operating costs, are the costs associated with running a company, or with running a machine, part, piece of equipment, or facility.
  • They represent the cost of the resources an organization uses just to stay in business.
<h3>What is cash flow?</h3>
  • The actual or fictitious movement of money is known as cash flow.
  • In finance and accounting, cash flow describes the capital inflows and outflows of particular economic units with the aim of achieving a particular goal within a predetermined window of time.
  • Making an accurate prediction of future cash flows is required in accounting in addition to measuring current cash flows.
<h3>Solution -</h3>

Revenue of 5 years = 155000 * 5 = 775000.

Operating cost of 5 years = 81000 * 5 = 405000.

Sale of equipment = 29100.

Net profit = 775000+29100 - 405000=399100.

Tax to be deducted at 25% = 99775.

Cash flow after tax 399100-99775=299325.

Therefore, the after-tax cash flow associated with the sale of equipment is $299,325.

Know more about Initial costs here:

brainly.com/question/14984116

#SPJ4

5 0
2 years ago
In 1 to 2 paragraphs, analyze how a person's ethics or values might affect his performance on
andrey2020 [161]

Answer:

A person's individual ethos truly reflects his/her business ethics too. Although general ethics in general is not influencing job performance (both in terms of effectiveness and efficiency) directly, bad ethics can sometimes be detrimental for someone's career. For example, if it is to be discovered that an employee has taken full credit for a colleague's achievement, his/her credibility will drastically fall and he/she will have less chance to get promoted.

On the other hand, if an individual possesses exceptionally good ethics or values (for example, being constantly sincere and not afraid to be direct with somebody even when it gets uncomfortable), it will certainly become noticed both by colleagues and managers. Thus, the employee with good ethics is very likely to get promoted.

7 0
3 years ago
100 points. The owner of this credit account needs to make a $5,000 medical payment and doesn't have enough in his or her other
Ipatiy [6.2K]

Answer:

transfre the money

Explanation:

6 0
3 years ago
1. If Net Capital Outflow increases, the ________ of dollars in the Foreign Currency Exchange Market will increase, causing the
earnstyle [38]

Answer:

1, supply, depreciate

Explanation:

If Net Capital Outflow increases, the supply of dollars in the Foreign Currency Exchange Market will increase, causing the real exchange rate to depreciate

3 0
3 years ago
Read 2 more answers
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