Answer:
ADJUSTED BOOK BALANCE
Bank balance $59,549 Book balance $61,709
+ Deposit in transit $4,250 Interest earned $33
- Outstanding checks <u>$2,075</u> Bank service fees <u>$18</u>
Adjusted book <u>$61,724</u> <u>$61,724</u>
balance
Answer:
D. $0.93
Explanation:
Upmove (U) = High price/current price
= 42/40
= 1.05
Down move (D) = Low price/current price
= 37/40
= 0.925
Risk neutral probability for up move
q = (e^(risk free rate*time)-D)/(U-D)
= (e^(0.02*1)-0.925)/(1.05-0.925)
= 0.76161
Put option payoff at high price (payoff H)
= Max(Strike price-High price,0)
= Max(41-42,0)
= Max(-1,0)
= 0
Put option payoff at low price (Payoff L)
= Max(Strike price-low price,0)
= Max(41-37,0)
= Max(4,0)
= 4
Price of Put option = e^(-r*t)*(q*Payoff H+(1-q)*Payoff L)
= e^(-0.02*1)*(0.761611*0+(1-0.761611)*4)
= 0.93
Therefore, The value of each option using a one-period binomial model is 0.93
Brainstorming is a technique for the decision making, it encourages arguments between the individuals but this sometimes result in conflicts and disagreements.
<h3 /><h3>What is decision making?</h3>
Decision making is the technique in which the decision is decided, according to the situation and after careful analysis of the environment decision is made.
Force Field technique is a decision making technique, in this technique the participants write the decision in the middle of the paper and list the forces that require and resisting changes.
Decision making techniques are important and should be used to make an effective decision, in a complex business it is difficult to apply the technique but it is also important to implement the technique.
Brainstorming is the technique in which all the participants sit together and share their ideas while some challenge the ideas and so a decision with an agreement is made.
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Adverse selection describes situations when high-risk persons are more likely to receive insurance or when one bargaining side has important knowledge that the other does not. Our goal is to influence decision-makers, both inside and outside of government, to consider the future and adopt long-term plans.
When vendors and/or purchasers have different knowledge about a certain component of a product's quality, this is referred to as adverse selection. Thus, those who work in hazardous environments or lead high-risk lives are more likely to buy life or disability insurance, knowing that they will likely be able to use it.
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