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3 years ago

5

QUESTION 2 of 10: A course that costs $500 will allow you to get a job that pays $2 more per hour than your current job. How man

y hours will you need to work at the new job before your investment in education has "paid off"?

1 answer:

miv72 [106K]3 years ago

8 0

Answer: 250 hours

Explanation: divide 500 into 2

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What is foreign direct investment

Tema [17]

Answer:

FDI

Explanation:

Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest. Lasting interest differentiates FDI from foreign portfolio investments, where investors passively hold securities from a foreign country. A foreign direct investment can be made by obtaining a lasting interest or by expanding one’s business into a foreign country.

8 0

3 years ago

The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $145 per share for months, and you believ

user100 [1]

<u>Solution and Explanation:</u>

a) Let us calculate the value of call using Put-Call Parity,

i.e. Put + Stock = Call + Present Value of Exercise Price (note that it is 6 - months time period)

$\text { i.e. } 8.19+145=\mathrm{call}+145 / 1.09^{\wedge} 0.5$

$\text { i.e. } 8.19+145=\mathrm{call}+145 / 1.044$

Therefore, Call = $ 14.31

b1) The option strategy best suited in the given condition is - Short or Sell Straddle.

In shorting a straddle, you simultaneously sell a call and a put, thereby earning premium in both the legs of the strategy. It is a neutral options strategy wherein profits can be made when stock price is expected to remain stagnant. However it is to be noted that the profits are limited to the option premium earned on call and put but the risk is unlimited. i.e. only when you are reasonably sure as to the stock price remaining more or less constant, go for short straddle.

b2) Assuming that we went for short straddle, we earn $ 8.19 premium on put and $ 14.31 premium on call i.e. we earn maximum of $ 22.50 on this stock due to our position in options.

b3) WITHOUT CONSIDERING TIME VALUE -

Now, CONSIDERING TIME VALUE - the stock price would need to swing in either direction by ( $22.50 * 1.09 \times 0.5)=$ $ 23.49 for us to start incurring losses.

c) Buy the call, sell the put and lend $ 138.8848

Let 'Price' in the table below denote the stock price at the end of 6 months.

If we take a long position in call, the immediate CF is $ 14.31 (premium outflow).

If we take a short position in put, the immediate CF is $ 8.19 (premium inflow)

Position Immediate CF CF in 6 months CF in 6 months

(if price < X) (if price > X)

Call (Long) -14.31 0 Price - 145

Put (Short) 8.19 - (145 - price) 0

Lending Position $145 / 1.09^{\wedge} 0.5=138.88$ 145 145

Total Price Price

NOTE- FIGURES ARE SUBJECT TO ROUNDING OFF.

3 0

3 years ago

According to McGregor which of the following characterizes the assumptions of a Theory X manager?

Korvikt [17]

Answer:

All of the above

Explanation:

This theory is one of the theories of work and motivation as it pertains to certain workers. The theory is by Douglas MacGregor

These are the assumptions

1.that many people hate anything work and would do anything they can to avoid working.

2.people are not ambitious. They would rather avoid responsibility

3. People have to be forced to work, so they must be directed.

7 0

3 years ago

The city of Brittainville’s Special Revenue Fund levied $350,000 in taxes, of which 1% was expected to be uncollectible during t

Arturiano [62]

Answer:

fund balance will increase by $404,000

Explanation:

Given data:

Fund levived in taxes $350,000

1% of fund expected to be uncollectible

Amount of fund collected $7500 as interest revenue

$ 50,000 transferred to general fund

As it is given 1% is uncollectible , remaining value would be

= $350,000- $3,500 (1% * $350,000)

= $346,500

The other inflows are $7,500 + $50,000,

Total inflow is = $57,500.

Total transaction = $346,500 + $57,500 = $404,000

8 0

3 years ago

A lawnmower manufacturer estimates that the probability of a fatal accident caused by the design of its product is 1/10,000 and

Wewaii [24]

Answer:

790,000, i.e. $79 x 10,000= 790,000 . Yes, the manufacturer should change the design. 666,667 (when it goes from 1/10,000 to 1/15,000). It is 500,000 (when it goes from 1/10,000 but 1/20,000) . No, the benevolent social planner would not agree with the manufacturer's decision.

Explanation:

In the estimates provided by the manufacturer, the total cost of the design is equivalent to $79 x 10,000= 790,000. There should be an alteration in the design to remove the necessary precautions. If the probability is different from the estimate provided by the manufacturer, the planner will disagree with the decision made by the manufacturer. For example, a change to 1/15000 will make the total cost to be approximately $666,667.

3 0

3 years ago