Answer:
a.) The proportional up movement , u, for the currency can be calculated using the following formula:
u = eStd Dev * Square root of t
u = e0.06*square root of 0.25
u = 1.0305
b.) Probability of up movement, p , = (a - d) / (u - d)
where a = ert where r = 0.025, t = 0.25
a = e0.025*0.25 = 1.0063
d = 1 / u = 1 / 1.3050 = 0.7663
p = (1.0063-0.7663) / (1.3050-0.7663)
p = 0.46
1-p = 1-0.46 = 0.54
c) Price of an American Call Option on the currency : we use binomial tree for that , as follows: The amounts below line indicate the option price and figures above line indicate the underlying asset price which is 0.55555
Answer:1.Even though Kelly did not actively post the leaked information on social media, Don and the rest of the management team decided she was still responsible for the social media infringement because she
a.told someone information which led to the social media post.
2.In the case of Serena’s social media complaints about the company, Don says the key is that, though her comments did not put the company in a good light, there are important lines she did not cross. ________, racial bias, and foul language are the three examples he cites that would beinfringements on company social media policies.
a.Hate speech
3.What is Don’s response when Kelly tells him that the assistant manager labelled social media training a “low priority”?
a.He makes a note to make sure it’ll never happen again.
4.When Kelly continues to argue against the decision to let her go, Don tells her that he is sorry to see her go and that he will give her the best reference he can under the circumstances. Here, what is his strategy for managing this difficult confrontation?
a.showing empathy for the employee
5.After the confrontation with Kelly, Don says that one thing that did not help the decision to let Kelly go was that she refused to take ________ for the social media violation.
a.responsibility
Explanation:
Answer:
1) The Investment would be classified as Held-to-maturity securities
2) Journal Entries (in millions)
Debit Investment $170 Credit Bank $140 Credit Discount on investment $30
3) Debit Bank $5.1 Debit Discount on investment $0.5 Credit Interest Income $5.6
4) Debit Fair Value loss $20 Credit Investment $20
5) The investment will be reported at the fair value of $150,000
6) Debit Bank $120 Debit Discount on Investment $29.5 Loss on Investment $0.5 Credit Investment $150,000
Explanation:
Interest = investment * semiannual interest
6%/2 = 3%
8%/2 = 4%
Bank = $170,000,000*3% = $5,100,000
Interest income = $140,000,000*4%= $5,600,000
Fair Value $150
cost $170
Fair Value Loss = $20
