Answer:
a) $8
b) $4
c) Decrease
Explanation:
Background.
A call option as you probably know, is an agreement to buy an asset on or before a particular day at a price already determined in the agreement.
a) the Intrinsic value of the option is the market price minus the strike price.
Intrinsic Value = Market Price - Strike price
= $43 - $35
= $8 per share.
It is worthy of note that for an option, of the intrinsic value dips into negative figures it is just said to be 0.
b) To calculate the time value, we subtract the intrinsic value from the call premium
= Call Premium - Intrinsic value
= $12 - $8
= $4
c) The call option has 6 months to maturity and the dividends are to come in 3 months. Share prices usually drop after a dividend has been paid so because the call option matures in 6 months, the price of the call option will DECREASE owing to the Expected drop in stock price.
Answer:
It would be unethical and a conflict of interest for Solomon to let his uncle in on the details because it would give his uncle an unfair advantage against the other bidding contractors. It's a form of nepotism
Explanation:
hope this helps have a great day
Answer:
$.49
Explanation:
In this question we have given
Cost of one burger=$3
Cost of fries=$1.5
Cost of drink=$2
Cost of value meal=$4.99
Therefore, marginal price of drink=cost of value meal-cost of fries and burger
=4.99-3-1.5
=$.49
The cash flow statement plays a vital role for each type of company as it shows the cash positions with respect to the liquidity because the cash should be the most liquid asset and the same would be presented in the organization's hands.
Moreover, they always try to have a sufficient cash amount so that the risk attached to the unfavorable economic situation could be eliminated. So the business wants to store a high value of cash amount and have sufficient liquidity and the same would be presented in the cash flow statement.
Learn more about cash flow here:brainly.com/question/24179665
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