Answer:
A) according to put call parity:
price of put option = call option - stock price + [future value / (1 + risk free rate)ⁿ]
put = $6.93 - $125 + [$140 / (1 + 5%)¹/⁴] = $6.93 - $125 +$138.30 = $20.23
B)
you have to purchase both a put and call option ⇒ straddle
the total cost of the investment = $6.93 + $20.23 = $27.16, this way you can make a profit if the stock price increases higher than $125 + $20.23 = $145.23 or decreases below than $125 - $20.23 = $104.77
I think the correct answer from the choices listed above is option C. <span>The facts that money must withstand the wear and tear that comes from being used over and over again is a measure of its durability. Hope this answers the question. Have a nice day.</span>
Answer:
Persists because economic wants exceed available productive resources.
Explanation:
According to Lionel Robbins, Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.
The problem of scarcity is that our wants are always beyond what we can produce with our resources.
Economics is the solution to this problem of what resources to use, how best to use them, and when to use them.
Because of this scarcity, all people have to make choices. When making choices, we assess the opportunity cost or the alternative forgone.
The opportunity cost of taking action is what we could have got if we had taken an alternative action.
Answer: $623 billion
Explanation:
Gross Domestic Product refers to the final value of the goods and services produced within a country in a certain period which is usually a year.
It can be calculated by several approaches with one of them being the Expenditure approach.
The formula is:
= Consumption + Investment + Government spending + Net exports
= 400 + 88 + 128 + 7
= $623 billion
A public good is an example of a good or product that individuals can consume or use without reducing its total availability for others. Goods like national security, sewer systems, public parks, among others, are considered as public goods. Many can benefit from it and it is considered by economists as goods that are "non-rivalrous" or "non-exclusive." <span>
</span>
