Answer:
17.5%
Explanation:
depreciation = 400,000 / 5 = 80,000
return = $250,000 - %100,000 - $80,000 = 70,000
70,000 / 250,000 =
The value of a one-month call option with an exercise price of $40 is $3.7.
<h3>How to calculate the value?</h3>
From the information given, the stock price of Heavy Metal (HM) changes only once a month as it goes up by 20% or it falls by 16.7% and the price now is $40.
The value of the call option will be:
= (p × 20) + (1 - p) - 16.7 = 1
where p = 0.48
= (0.48 × 8) + (0.52 × 0) / 1.01
= 3.8
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Incomplete question. I provided three factors that can impact cost or revenue within an organization.
<u>Explanation:</u>
1. Production capacity: Theoretically, the greater the production capacity, the higher the opportunity for added revenue since more of the goods or services can be rendered.
2. The market segment: A good market segment can result in profitability for the business.
3. Type of labor employed: Many modern-day industrialists believe that organizations that switch to an automated labor force can achieve lower operational cost; thereby leading to more revenue.
