Answer:
The amount of maximum net loss is $100
Explanation:
The butterfly spread comprise of buying 100 options with the strike price of $60 and $70 and the selling 200 options with the strike price of $65.
The maximum loss is when the strike price is less than $60 or be greater than $70. The aggregate payoffs from the options will amount to $0.
The cost of setting up the butterfly spread is:
= 11 × 100 + 18 × 100 - 14 × 200
= $100
Therefore,the net loss will be $100
Answer:
$656,000
Explanation:
Calculation to determine what The balance in the right-of-use asset after two years will be
Using this formula
Right-of-use asset after 2 years balance=Value of Asset- (Value of Asset*Used year)/Estimated Life
Let plug in the formula
Right-of-use asset after 2 years balance= $820,000 - ($820,000 / 10) * 2
Right-of-use asset after 2 years balance=$820,000-$164,000
Right-of-use asset after 2 years balance= $656,000
Therefore The balance in the right-of-use asset after two years will be:$656,000
Answer:
25 seats
Explanation:
Calculation to determine By how many seats should Super Discount overbook the fight
First step is to calculate the Critical ratio=
Using this formula
Critical ratio=Cu/Cu+Co
Where,
Cu represent cost of underetimating the demand =$134
Co represent the cost of overestimating the demand $263
Let plug in the formula
Critical ratio=$134/$134+$263
Critical ratio=$134/397
Critical ratio=0.3375
Second step is to find the z-score that yields a p-value of 0.3375 using excel's normsinv() function which gives us -0.4193.
Now let determine how many seats should Super Discount overbook the fight
Numbers of seats to overbook the fight=35+ (-0.4193 x 24)
Numbers of seats to overbook the fight= 35 - 10.0632
Numbers of seats to overbook the fight = 24.9368
Numbers of seats to overbook the fight = 25
(Approximately)
Therefore the numbers of seats that super discount airlines should overbook the flight is 25 seats.
Gold standard is the variable of currency based on the price of gold. The value of the currency was defined in terms of gold and the currency could be exchange. This standard has been abandoned last 1930s during the Depression.
Answer:
E) matrix departmentalization
Explanation:
Matrix departmentalization is an organizational structure that combines functional and task force departmentalization in order to improve economies of scale and/or customer service.
Commerce Insurance Services is divided functionally in five divisions, and each division is also divided along product lines (tasks).