The answer to your questin is THE 4TH ONE Please mark as brainlest if helps
Answer:
D. $0.93
Explanation:
Upmove (U) = High price/current price
= 42/40
= 1.05
Down move (D) = Low price/current price
= 37/40
= 0.925
Risk neutral probability for up move
q = (e^(risk free rate*time)-D)/(U-D)
= (e^(0.02*1)-0.925)/(1.05-0.925)
= 0.76161
Put option payoff at high price (payoff H)
= Max(Strike price-High price,0)
= Max(41-42,0)
= Max(-1,0)
= 0
Put option payoff at low price (Payoff L)
= Max(Strike price-low price,0)
= Max(41-37,0)
= Max(4,0)
= 4
Price of Put option = e^(-r*t)*(q*Payoff H+(1-q)*Payoff L)
= e^(-0.02*1)*(0.761611*0+(1-0.761611)*4)
= 0.93
Therefore, The value of each option using a one-period binomial model is 0.93
Answer: large lot sizes to save on setup costs and to gain quantity discounts.
Explanation:
Just in time is the kind of system where your material or component arrives just when you require them and does not take up time. This is helpful in saving storage cost. Just in time however, does not include large lot sizes to save on setup costs and to gain quantity discounts.
The statement is True. In any industry in which repeat business is done with the same parties, there is always a balance between pushing the limit on any particular negotiation and making sure the other party—and your relationship with him—survives intact.
Negotiation is a dialogue among two or extra human beings or events to reach a preferred final result regarding one or more troubles of battle. it's miles an interplay among entities who aspire to agree on topics of mutual interest. The agreement may be useful for all or some of the events concerned.
Examples of employee-to-1/3-celebration negotiations encompass: Negotiating with a purchaser over the charge and terms of a sale. Negotiating a prison agreement with an opposing legal professional. Negotiating carrier or supply agreements with companies.
The term negotiation refers to a strategic dialogue that resolves a problem in a way that each event locates ideal. In a negotiation, every birthday party tries to persuade the alternative to accept as true with their factor of view.
Learn more about negotiation here brainly.com/question/902450
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