Answer: B) The option premium is greater or equal to its intrinsic value because of the time premium.
Explanation:
The option premium can be calculated by adding the time premium and the intrinsic value. The time premium is the part of the option premium that accounts for the time remaining till the premium matures while the intrinsic value is the difference between the value of underlying asset and the strike price.
As the time premium can be zero but never negative, the option premium can either be greater than its intrinsic value or equal to it. It cannot be lower than it because of the time premium.
Answer:
Set.
Explanation:
Closure property in algebra asserts that 'when an operation(multiplication, addition) takes place among the members of a set, the result produced would surely be a member of that same set.' For example, if we add or multiply two real numbers(members of the same set), the result would be a real number for sure(a member of the same set). It implies that 'real numbers are closed under multiplication and addition.' While if I subtract two real numbers, I may or may not get a real number. Thus, the real numbers are closed under subtraction.
Answer:
e.$8,000 of fixed costs and $108,000 of variable costs.
Explanation:
Fixed costs don't change with a change in production volume, therefore, fixed costs remain $8,000.
The cost per unit to produce 15,000 units is:
Assuming a new production volume of 18,000 units, budgeted variable costs are:
The budgeted amounts are: e.$8,000 of fixed costs and $108,000 of variable costs.
Answer:
MAX WEBER
Explanation:
Legal domination, its purest type is bureaucratic domination, is based on the fact that any right can be created and modified by means of a statute sanctioned correctly in terms of form, that is, through this type of domination the ruling class uses legal bodies to achieve its goal of maintaining domain control.
In a position, his performance demands all the performance of the official; This means that whoever occupies the position must be efficient in their functions, therefore a high level of performance is expected from the leaders of the bureaucratic organization.
