Answer:
B
Explanation:
moneys always good motivation
A principle is a fundamental statement, which generally Become Platform Thinking / acting. The fundamental principle of a statement are:
Practically, that principle is always can be Used irrespective From Time or When applied,Relevant (related) with a provision That is the fundamental basis and thus provide a view Size That covers many things,Consistent (steady) hearts the sense that hearts Similar situations will arise Similar findings Also,
Long term unemployment is defined as being unemployed for 27 weeks or more. In this example there are a total of 60 people, 52 people who would be categorized as short term unemployment and 8 people who would be categorized as long term unemployment.
In order to calculate the percentage of unemployment in each category you will need to divide the number in each category by the total number.
Short term = 52/60 = 86.7%
Long term - 6/60 = 13.3%
Answer:
The value of the call option today is $7.73
Explanation:
The value or price of the call option under the two state model is calculated based on the assumption that there is no opportunity for arbitrage profit. The value of call option will be based on the return in case the call option is exercised and the probability of earning that return.
The strike price is $105
The return if price goes to $122 and option is exercised is 122 - 105 = $17
The return if the price goes down to $88 will be 0 as the call option will not be exercised.
Thus, the expected return is = 0.5 * 17 + 0.5 * 0 = $8.5
This return will be earned after 1 year. To calculate the value of the call option today, we need to discount this return to present value using the risk free rate.
V0 or value today = 8.5 / (1+0.1) = $7.727 rounded off to $7.73
<span>The answer to your question is Annual Compounding</span>
