If a client buys 1 XYZ Aug 50 put at 1, and deals 1 XYZ Aug 65 put at 10 when XYZ is at 58, the greatest potential gain is 900.
<h3>The Formula and Calculation of Time Value</h3>
The instructions below show that time value is derived by removing an option's intrinsic value from the option bonus. In other words, the time worth is what's left of the premium after calculating the profitability between the strike expense and the stock's price in the market.
The maximum gain on any distinction spread is the net credit. In this issue, $1,000 was received and $100 paid out, so the net recognition is $900.
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Answer:
sharing information across the organization.
Explanation:
ERP software systems allow employees accurate and timely access to real time information about the company's areas that they work with. This can optimize how the company operates and increase cooperation between different areas. Also unnecessary operations and delays are eliminated.
Before, salespeople had to continuously check with inventory department about what products were available and ready to be sold, which caused delays and time is money.
Answer:
g. Three additional stores owned by Kristin’s company are managed by recent Wharton graduates, and all three managers have increased sales by 18 percent for each of the past three years.
Explanation:
Firstly, the former manager who retired increased sales by 15 percent every year for the past five years. Secondly, based on the performance of recent Wharton graduates, who were managers at three additional stores owned by Kristin's company and were able to perform better than this former manager who just retired by increasing sales by 18 for the past three years in their respective stores. Kristin can therefore conclude to higher Roger Benson to repeat the same stellar performance.
Answer: d)Firms have to pay more to attract inputs, as these inputs have to share the risk.
Explanation: When the market system tries to put restriction on the business risk to owner and other investors , the firms have to give more payment to attract them to market business.
The chances of risk have have to be shared by both the parties so the owners or investors are going to indulge in the business when they gain some benefit e.g.-more payment.
Other options are incorrect because entrepreneurship will not be encouraged through this process. Incomes will not be distributed equally and neither the prudent risk management will be aimed.Thus, the correct option is option(d).
Net present value aka NPV is the gap between the present value of inflows and outflows of cash. This is used in project appraisal, to know whether a particular project with projected receipts and expenditures would be profitable considering current days. This is just a guide because actual occurrences may dramatically deviate from predictions.
