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frutty [35]
3 years ago
14

Suppose ABCD's stock price is currently $50. In the next six months, it will either fall to $40 or rise 8 to $60. What is the cu

rrent value of a six-month call option with an exercise price of $50? The six- month risk-free interest rate is 2% (periodic rate).
A. $5.39
B. $15.00
C. $8.25
D. $8.09
Business
1 answer:
ivann1987 [24]3 years ago
6 0
The answer is B. $15.00
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Your company is about to undertake a major investment project. The project will require an initial outlay of $100 million for fi
Tcecarenko [31]

Answer:

A) initial outlay = $150 million

Cash flow year 1 = [($30 - $25) x 0.6] + $25 = $28

Cash flow year 2 = [($30 - $25) x 0.6] + $25 = $28

Cash flow year 3 = [($30 - $25) x 0.6] + $25 = $28

Cash flow year 4 = [($30 - $25) x 0.6] + $25 + ($25 x 60%) + $50 = $93

B) Using a financial calculator, NPV = -$16.85 million

C) cash flow year 4 should increase by $24.667 million, meaning that the selling price must increase by $$24.667/0.6 = $41.11 million

minimum selling price $25 + $41.11 = $66.11 million

7 0
3 years ago
A supply chain management (SCM) system is an IT system that supports supply chain management activities by: a. helping decision
Evgen [1.6K]

Answer:

The correct answer is letter "B": automating the tracking of inventory and information among business processes and across companies .

Explanation:

Supply Chain Management (SCM) comprises all the steps companies take from gathering raw materials until the delivery of a final good to consumers. In the process, several resources are used such as Information Technology (IT) systems which allow measuring numerically materials, components, labor hand and hours, and the necessary resources for the manufacturing company given a period.

Besides, <em>IT systems are useful to keep track of the flow of the units being produced when they hit the warehouse shelves and when they leave the company for sale. This information is useful for the plant and its suppliers.</em>

3 0
4 years ago
Two examples of generally accepted accounting principles are:
tresset_1 [31]
The answer to this question is: <span> accounting for leases and accounting for fair value assets
Leases and fair value assets is often used by companies in order to make their company valuation seem higher than it supposed to be. So, standardized rules regarding the proper way to make the valuation should be written under the Generally accepted accounting principles.</span>
8 0
3 years ago
Name and explain the relationship between triple bottom line social responsibility
KonstantinChe [14]
The three bottom line in the social responsibility are :

- Economic
- Social
- Environment

This three bottom lines could directly affect each other. For example, as the company experienced an economic growth, it could increase the quality of the social and environmental element around the company through various Corporate social responsibilities.
7 0
3 years ago
Dylan, a vice president of human resources, recommends adding self-appraisals to the company's performance management system. Th
masha68 [24]
<h2>Evaluating one's contribution gets employee thinking about their performance.</h2>

Explanation:

Self-appraisal is one of the best method to assess themselves of what kind of contribution that he has made to the company to grow.

He can also look back about the opportunities that the company has given to him to perform.

This actually,

  • speaks for results
  • gets the chance to do peer review
  • an exercise to grow in terms of career
  • list out the achievements of self
  • contribution done by the self

So the chosen statement supports Dylan's idea.

3 0
3 years ago
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