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mrs_skeptik [129]
3 years ago
10

The common stock of Mercury Motors is selling for $28.97 a share while one-year U.S. Treasury securities are currently yielding

2.8 percent. What is the current value per share of a one-year call option on Mercury Motors stock if the exercise price is $22.50 and you assume the option will finish in the money
Business
1 answer:
Usimov [2.4K]3 years ago
5 0

Answer:

$7.08

Explanation:

In short, Value of Call option = Stock Price - Strike Price

Current Value of Strike price = 22.50 * (1+2.8%)^-1

Current Value of Strike price = 22.50 * (1.028)^-1

Current Value of Strike price = 22.50 * 0.9727626459143969

Current Value of Strike price = 21.88715953307393

Current Value of Strike price = $21.89

Current Value of Stock = $28.97

Thus, Value of Call option = $28.97 - $21.89

Value of Call option = $7.08

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Answer: A transnational organization is an organization that operate in more than one country. It is very important for such organization to have headquarters in each country their operate, because each country their operate will demand that the company should be registered as an organization, according to the countries terms and condition.

When a transnational company has at least one headquarters in the country their operate, it will help the operations of it's business in that country, It will help the organization in fast decision making, it will help the organization to run it's business in different ethics in accordance with the country it operates, it will help the organization in it's mode of employment. The organization can have a corporate headquarters in the country of it's origin, where the Managing directors of each headquarters come to discuss the business of the company.

One example of a transnational organization which has more that one headquarters is ExxonMobil. This company has more than 10 headquarters in different countries. And it's corporate headquarters is in Texas.

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3 years ago
A natural monopoly can occur when the average cost of making a good _____ a lot as output increases.
Anon25 [30]
A natural monopoly can occur when the average cost of making a good decreases a lot as output increases. Hopefully the demand goes up as well!
5 0
3 years ago
Read 2 more answers
What is one example of how a government exhibits limited influence in a market economy?
Gekata [30.6K]

Answer: I would choose the 3rd choice.

Explanation:the creation of privately-owned businesses

4 0
3 years ago
when commercial farming proposals have promised more jobs in zambia, why have there been job losses at the farm taken over by ch
bekas [8.4K]

The commercial farms have not offered assistance to the nearby subsistence farmers.

<h3>What is commercial farming?</h3>

Commercial farming is done to cultivate crops and cattle in order to gain money. Crops can be sold directly to consumers and businesses or processed into products like juices, jellies, pickles, and other foods.

Commercial agricultural practices: the raising of animals and food for market, frequently utilizing current technology.

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4 0
1 year ago
Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places s
yulyashka [42]

Answer:

d. $672.41 per service call

Explanation:

The computation of the activity rate for servicing goods is shown below:

= (Total servicing good cost) ÷ (Total service calls)

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The total service call would be

= JIT distributors + Non-JIT distributors

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= 290

All other information which is given is not relevant. Hence, ignored it

6 0
3 years ago
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