Answer:
$7,776,899
Explanation:
Calculation to determine what interest expense would it recognize in its 2021 income statement
Interest expense= $388,844,955 * 8% * (3 months/12 months)
Interest expense= $31,107,596.4 * 3/12
Interest expense= $7,776,899
Therefore the interest expense that would be recognize in its 2021 income statement is $7,776,899
Answer:
the delta of the corresponding put option is -0.6
Explanation:
Since it is given that that the delta of a call option is 0.4
So, the delta of the corresponding put option is
As we know that
Delta of the put option = Delta of a call option - 1
= 0.4 - 1
= -0.6
Hence, the delta of the corresponding put option is -0.6
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Firm B will no longer pollute and firm A will no longer reduce its pollution at all.
Explanation:
It is noticed here that this is used as a form to calculate the pollution production rate of both firms in the case above.
Therefore, firm B will have to sell out its allotted 20 permits, and clean up all of its 50 units of pollution. The price per permit will be above $50 each. Firm A will BUY ALL 20 of B's permits. It will then dump 40 tons into the water, and will clean up its remaining 10. The price it pays for a permit will be under $100.