A) Each of these assertions is true A person who owns a put option might think about exercising the option, The put option has an intrinsic value of $3.16, The put option has a time value of $3.73.
<h3>What is the Put Option?</h3>
A put option, also known as a "put," is a contract that gives the buyer of an option the right, but not the obligation, to sell a certain amount of an underlying security—also known as selling short—at a predetermined price within a predetermined time frame. The strike price is the predetermined price at which the buyer of the put option can sell the underlying security.
The underlying assets of put options can be stocks, currencies, bonds, commodities, futures, or indexes. A call option, on the other hand, grants the holder the right to purchase the underlying security at a predetermined price either on or before the option contract's expiration date.
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Answer: sensitivity analysis
Explanation:
From the information given in the question, we can infer that the type of DSS analysis that Tom is performing is the sensitivity analysis.
Sensitivity analysis simply refers to the quantitative risk assessment that deajs with how the alteration of a particular variable will have an effect on the model's output.
Here, Tom believing that he can increase revenue up by implementing a few different breakfast promotions like the free coffee or hash browns shows that he's using sensitivity analysis.
Answer:
Financial Assets / International Value of Dollar both decrease
Explanation:
Open market operations are carried out by the government to control supply of money in the economy.
When there is to be a reduction in money supply a government can sell bonds thereby mopping up the cash in the economy.
On the other hand when they want to increase money supply bonds are bought and cash injected into the economy.
In the given scenario the Federal Reserve buys bonds on the open market. This will cause a decrease in purchase of financial assets by foreigners because bonds are no longer available. They have been purchased by the government.
Buying of bonds by the Fed will also increase money supply. There will be excess supply over demand.
This will tend to reduce the value of the dollar.
Answer:
A. $ 2,936
Explanation:
Corner Market purchased $4,500 worth inventory from the suppliers, and also paid $290 freight bill for those inventory. It also returned 40% and received 2% discounts. Corner Market's final cost of the inventory that it kept is as follows:
Therefore, Merchandise Inventory = $4,500
Less: Purchase Return $(4,500 × 40%) = <u>($1,800)</u>
$2,700
<u>Less: Purchase discounts $(2,700×2%) = ($ 54)</u>
Net Merchandise Inventory = $2,646
<u>Add: Freight bill $ 190 </u>
Final cost of Merchandise Inventory = $2,936