Answer: a. The black-scholes call price for 1 year is 0.
For 10 years it is also 0.
Option price did not change.
b. When δ is 0.001, the black-scholes call price for 1 year is 450.012.
For 10 years it is 450.0012.
The option price changed from 450.012 to 450.0012.
The difference was due to the change of δ value from 0 to 0.001.
Explanation: using the black-scholes equation below option price is callculated based on the given values.
δk/δt+1/2σsquare×Ssquare×δsquare×k/δS+rS×δk/δS-rk=0
By calculations the options prices were obtained for the first value of δ=0 both for 1 year and 10 years and compared with when the value of δ was changed to 0.001
A change in option price was also observed as the δ values changed this lead to the difference observed.
<span>An Exception Report identifies data outside of normal conditions. </span>
The times-interest-earned ratio is one indication of a firm's ability to meet both long-term and short-term obligations. - True
<h3>
What is Short term obligations?</h3>
- Current liabilities, often known as short-term debt, refer to a company's debts that are due to be repaid within a year.
- Short-term bank loans, accounts payable, salaries, lease payments, and income taxes payable are typical examples of short-term debt.
- The quick ratio is the most often used indicator of short-term liquidity and is crucial in evaluating a company's credit rating.
To learn more about short-term debt, refer to the following link:
brainly.com/question/14843215
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Answer:
Analysis
Date Description Amount Account // Sales // Other
Receivables
9th Promissory Note 3,125 3,125
18th Cash Sale 306 306
27th J.Than Account <u> 1,165 1,165 </u>
Subtotals 4,596 1,165 306 3,125
Explanation:
We are required to record inthe cash receipts journal therefore, only thus transactions which involve the receipts of cash will be jounralize.
We will record the amount to get the total
And then, break it into account receivables, sales and other concepts.
Answer:
Cost of Goods Sold on the income statement for the year ending December 31, 2019 is $ 24,010
Explanation:
First in First Out is an Inventory management system that is build on the idea of selling first the Inventory that came earlier or acquired first.
Perpetual Inventory System Records cost of sale of inventory with each sale
Sale of Inventory was made on March 10,2019 and October 30,2019. It is important to keep track of the cost of sale of inventory on these dates and then find the total which will be presented as cost of sales in the financial Statement
<u>Cost of Goods Sold</u>
March 10,2019 : 80 units × $82 6,560
October 30,2019 : 45 units × $ 82 3,690
160 units × $ 86 13,760
Total Cost of Goods Sold 24,010
