Answer:
The ads have a short shelf life.
Explanation:
This is is a disadvantage of newspaper ads and the best option among these.
Answer:
Explanation:
The time (T) = 6 months = 6/12 years = 0.5 years
Interest rate (r) = 6% = 0.06
The stock is priced [S(0)] = $36.50
The price the stock sells at 6 months (
) = $3.20
European call (K) = $35
The price (P) is given by:

The price of a 6-month, $35.00 strike put option is $1.65
Answer:
Aquaguard may choose any of the two models to minimize the production variability in the new plant.
Explanation:
Model 1: Mean = 1000, Standard Deviation(SD) = 300
Model 2: Mean = 1000, SD = 300
Model 3: Mean = 1000, SD = 300
Coefficient of variation for model 1
C.V = ( SD ÷ Mean) × 100
= ( 300 ÷ 1000 ) × 100
= 30 %
Coefficient of variation for model 2
= ( 300 ÷ 1000 ) × 100
= 30 %
Coefficient of variation for model 3
= ( 300 ÷ 1000 ) × 100
= 30 %
We conclude that all the models have same effect .
Answer:
4.5 and 3
Explanation:
We know that
Real exchange rate = Nominal exchange rate × (Cost of the basket in US ÷ Cost of the basket in Norway)
So according to this formula, the computation is shown below
When the nominal exchange rate is 3, then the real exchange rate would be
= 3 × (60 ÷ 40)
= 4.5
When the nominal exchange rate is 2, then the real exchange rate would be
= 2 × (60 ÷ 40)
= 3