<span>Manage the technological areas of the company</span>
Answer:
Payoff = $2 per share.
Explanation:
In a put option, the long (the party that buy the put) will have gain on the option when the underlying asset price is lower than the excercise price of that asset <em>(imagine the advantage that you can sell a chicken at $12 when it market price of is is only 10)</em>.
Because the stock price is $91, lower than exercise price of 93, so the company should exercise the put. Total payoff per share is 93 - 91 = $2.
<em>Note: We dont include premium to buy the put here because the question asking about payoff. We on include premium in calculations when the question is about profit.</em>
Answer:
Implied warranty.
Explanation:
Implied warranty is when there are presumed assurance of the performance of a product due to the circumstances of the sale. For example when one purchases a television the assumption is that the television will work. This is the implied warranty when making a purchase.
In this instance Sylvania sells light bulbs and the buyer assumes that the bulbs are safe to use, and will last for a good period of time before they fail.
A violation of implied warranty for example is if one buysa product and it does not work at all. The customer can return the item for replacement.
Answer:
40th unit = 0.11 hr
80th unit = 0.06 hr
160th unit = 0.03 hr
Explanation:
Given :
Learning rate = 60% = 0.6 (r)
Now using the learning curve equation,
where b is = -0.833
Now
= 2.5
For 40th unit
= 0.11 hrs
For 80th unit
= 0.06 hrs
For 160th unit
= 0.03 hr