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3 years ago

The delta of a call option on a non-dividend-paying stock is 0.4. What is the delta of the corresponding put option?

Business

1 answer:

denis-greek [22]3 years ago

6 0

Answer:

the delta of the corresponding put option is -0.6

Explanation:

Since it is given that that the delta of a call option is 0.4

So, the delta of the corresponding put option is

As we know that

Delta of the put option = Delta of a call option - 1

= 0.4 - 1

= -0.6

Hence, the delta of the corresponding put option is -0.6

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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When Paul arrived at work in the morning, he promised his co-workers that he would buy dinner for all of them that evening. He m

patriot [66]

Answer: No, Paul has not breached a contract.

Explanation: To answer this, we must first we must define what a contract is.

A contract is an agreement between two or more people that is legally binding, and which guides or governs the actions or conducts of the parties involved.

A quality that makes a contract legally binding is that it is enforceable by law.

In the scenario given in the question above, Paul has not breached any contract because there isn't one. The promise to buy dinner has not been legally bound, therefore, it is not enforceable by law, in essence, it is not qualified to be called a contract.

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3 years ago

Eric works at an electronics store in a mall. Eric doesn't like to work hard, and it costs him $100 to do so. Eric's employer ca

SCORPION-xisa [38]

Answer: work hard; $65; less; $85

Explanation:

The following can be deduced from the question:

The Expected profit from working hard will be:

= (90% × $200) + (10% × $50)

= (0.9 × $200) + (0.1 × $50)

= $180 + $5

= $185

Then, the profit will be the difference between revenue and coat which will be:

= $185 - $100

= $85

Then, the expected profit from shirking will be:

= (90% × $50) + (10% × $200)

= (0.90 × $50) + (0.10 × $200)

= $45 + $20

= $65

Then, the profit will be:

= $65 - $0

= $65

Eric will (work hard) because the net gain of ($65) from shirking is (less) than the net gain of ($85) from working hard.

7 0

3 years ago

Pine Creek Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished goods inventory was 2

solniwko [45]

The cost of goods sold for 210,000 units using a FIFO cost flow for Pine Creek Company during the year is $3,085,000.

FIFO means First-in, First-out.

The FIFO cost flow method is an accounting technique to determine the cost of goods sold and ending inventory based on the assumption that goods produced first are the first to be sold.

The FIFO method is the opposite of the Last-in, First-out (LIFO) method.

<h3>Data and Calculations:</h3>

Number of units produced = 200,000 units

Cost of production = $3 million

Unit cost of production = $15 ($3,000,000/200,000)

Beginning finished goods inventory = 25,000 units

Cost of Beginning inventory = $310,000

Cost of goods sold = $3,085,000 ($310,000 + $15 x 185,000)

Thus, the cost of goods sold for 210,000 units using a FIFO cost flow for Pine Creek Company during the year is $3,085,000.

Learn more about the FIFO Cost Flow Method at brainly.com/question/19167666

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3 0

1 year ago

Mechem Corporation produces and sells a single product. In April, the company sold 2,000 units. Its total sales were $163,000, i

Scilla [17]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The company sold 2,000 units.

Total sales were $163,000

Total variable expenses were $80,900

Total fixed expenses were $57,800.

<u>The contribution margin income statement follows this structure:</u>

Income statement:

Sales

-Total variable cost

= contribution margin

-fixed costs

= net operating income

1) Income statement

Sales= 163,000

Total variable cost= (80,900)

Contribution margin= 82,100

Total fixed costs= (57,800)

Net operating income= 24,300

2) First, we need to calculate the unitary selling price and unitary variable cost:

Selling price= 163,000/2,000=$81.5

Unitary variable cost= 80,900/2,000= $40.45

Sales= 1,900*81.5= $154,850

Total variable cost= (1,900*40.45)= (76,855)

Total contribution margin= 77,995

Total fixed cost= (57,800)

Net operating income= 20,195

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3 years ago

Which question is an illustration of a macroeconomic question? rev: 05_10_2018 Multiple Choice Is a corporation unresponsive to

Tasya [4]

Answer:

How will the government’s budget deficit be affected by public infrastructure projects?

Explanation:

Macroeconomics is concerned with the general behavior and changes in the economy as a whole. Macroeconomics studies parameters that affect the entire economy, such as inflation, unemployment, national income, gross domestic product (GDP), and general price levels. It contrasts microeconomics, which studies the choices and behavior of individual households and industries.

A government's budget is for the entire economy. A deficit that affects public infrastructure projects will impact the country's economic development programs. Government spending forms part of fiscal policies that influence economic development in a country.

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3 years ago