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
Answer:
Authorities can be assigned, but never delegated obligations. Subordinates are responsible for "results" and managers are responsible for their subordinates ' actions. You can't be held responsible for a mission if you have little competence.
Explanation:
The delegation lets you pass the power to professional team members to work on more urgent matters. But you are still responsible for doing these in the right way. It is therefore necessary to periodically track the status or interact with the team member
Let us recognize some of the fundamental principles to be observed in delegating: 1. The delegated authority to subordinates should be adequate to achieve the desired performance.
2. The power may be delegated but never assigned responsibility. Subordinate accountability is "efficiency" and managers are "responsible for their subordinates ' activities."
3. A duty can not be held accountable if it only has limited authority. A balance between authority and responsibility must be created.
4. A single superior's presence brings to mind the subordinate more personally responsible.
Answer: $230,500
Explanation:
Based on the information given, to solve the question, we will use the interest rate of 12%. Since the present value factors have already been given, the lease liability to be recorded will then be:
= 50,000 × PV at 12%
= 50000 × 4.61
= $230,500
Therefore, At the beginning of the lease term, Day should record a lease liability of $230,500.
Answer:
Hedge fund are financial partnerships that use pooled funds and employ different strategies to earn active returns for thier investors.. Hedge fund include long-short equity, market neutral, volatility arbitrage and merger arbitrage. They are generally only accessible to accredited investors
Answer:
c. Implement a plan of action.
Explanation:
You already made your decision, so you've already considered all the outcomes and checked whether you have the resources needed for this. So the only thing left to do is to implement the plan of action
