1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ainat [17]
2 years ago
13

Before expiration, the time value of a call option is equal to Group of answer choices zero. the actual call price minus the int

rinsic value of the call. the intrinsic value of the call. the actual call price plus the intrinsic value of the call.
Business
1 answer:
masya89 [10]2 years ago
6 0

Answer: the actual call price minus the intrinsic value of the call.

Explanation:

The actual price of a call is calculated as the sum of the intrinsic value of the call and the time value of the call option in the manner:

Price of call = Intrinsic value of call + Time value of call

The Time value of the call is therefore:

Change subject of below formula:

Price of call = Intrinsic value of call + Time value of call

Time value of call = Price of call - Intrinsic value of call

You might be interested in
When a businessperson makes a decision based on his or her fundamental ethical duty to “do no harm,” that person is practicing?
Montano1993 [528]
It seems that you have missed the necessary options for us to answer this question, so I had to look for it. Anyway, here is the answer. <span>When a businessperson makes a decision based on his or her fundamental ethical duty to “do no harm,” that person is practicing MORAL IDEALISM. Hope this answers your question.</span>
8 0
2 years ago
You decide to invest in a period annuity that offers 4.5% APR compounded monthly for 20 years. How much money will you need to i
USPshnik [31]
$553,229.03 this is the answer for APEX
7 0
2 years ago
An employee refuses an employer's request to falsify the contents of a report to the EEOC. The employer subsequently discharges
atroni [7]

Answer:

Public policy

Explanation:

The 3 major exceptions for the at-will-employment doctrine are:

  • public policy: an employer cannot fire an employee for refusing to do something that goes against the law, or for doing something that he/she is entitled to do by law (e.g. serve in a jury or military reserve).
  • implied contract
  • implied covenant of good faith

6 0
2 years ago
An increase in consumer income increases the demand for automobiles. As a result of the adjustment to a new equilibrium, there i
Bumek [7]

Answer:

B. upward movement along the supply curve.

Explanation:

An increase in the income of a consumer income would have a significant impact on the quantity of goods demanded by him or her such as increasing the demand for automobiles. As a result of the adjustment to a new equilibrium, there is an upward movement along the supply curve

7 0
2 years ago
Doug Stamper just received an insurance settlement offer related to an accident he had several years ago. The offer gives Stampe
sladkih [1.3K]

Answer:

Doug Stamper

The CORRECT statement is:

b. Option A is the best choice because it has the largest present value.

Explanation:

a) Data and Calculations:

Option A: $2,000 per month for 84 months is worth PV = $136,906.08:

N (# of periods)  84

I/Y (Interest per year)  6

PMT (Periodic Payment)  2000

FV (Future Value)  0

 

Results

PV = $136,906.08

Sum of all periodic payments $168,000.00

Total Interest $31,093.92

Option B: $1,100 per month for 15 years is worth PV = $130,353.87:

N (# of periods)  180

I/Y (Interest per year)  6

PMT (Periodic Payment)  1100

FV (Future Value)  0

Results

PV = $130,353.87

Sum of all periodic payments $198,000.00

Total Interest $67,646.13

Option C: $125,000 lump sum today is equal to PV.

5 0
1 year ago
Other questions:
  • Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is drive
    7·1 answer
  • When Patey Pontoons issued 6% bonds on January 1,2016, with a face amount of $600,000, the market yield for bonds of similar ris
    6·1 answer
  • The Closed Fund is a closed-end investment company with a portfolio currently worth $200 million. It has liabilities of $3 milli
    9·1 answer
  • If Texia specializes in food, it can produce 1,000 units of food and 0 units of clothing this year. Ifit specializes in clothing
    15·1 answer
  • In an open economy, gross domestic product equals $1,970 billion, government expenditure equals $300 billion, investment equals
    10·1 answer
  • 1. M1 includes more than just currency because
    12·1 answer
  • The marketing researcher for a game company is conducting an experiment to test customer reaction to the pricing of a new game d
    6·1 answer
  • Select the true statement about the impact of automation on employment. a.) Automated processes have no effect on the number of
    10·1 answer
  • 16. A type of card that allows the card holder to spend a certain amount of money without ever having to pay it back?
    11·1 answer
  • Which balanced scorecard perspective helps top management focus on what the organization must excel at to effectively meet its f
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!