Answer: C. expected change in the option premium for a small change in time to expiration
Explanation: The theta of an option is simply defined as the expected change in the option premium for a small change in time to expiration. When all other variables are kept constant, options generally will lose value the closer it gets to its maturity as such, theta of options measure the rate of decline or decay in the value of an option due to the passage of time (quantifies the risk that time poses to option buyers) and is expressed as a negative value.
Answer:
The answer is option (c)$89,301
Explanation:
Solution
Given that:
Inflation rate = 2%
The expected value of an investment = 82,500
Now,
nominal terminal value of the investment at the end of year 4.
Thus,
The nominal terminal value rate at the end of year four is given as follows:
= 82, 500 * (1 +2%) ^4
=$89300. 65
= $89,301
<span>If this key employee were to die and the policy is still in force and unchanged, the death proceeds will be directed with the Key Person Insurance. The company will purchase, owns, pays the premiums and is the beneficiary of the life insurance on the key person. This is because the key person is still employed in that company.</span>
Answer:
The answers is: B) 5 apples; 2 apples
Explanation:
The opportunity cost is how much of one product you are giving up when you decide to take a different product.
In this case, for every pair of shoes an American worker decides to make, he is not growing 5 apples (100 apples / 20 pairs of shoes).
And for every pair of shoes a Canadian worker decides to make, he is not growing 2 apples (20 apples / 10 pairs of shoes).
Even though I didn't see the video mentioned in the question, banks make most of their money through banking fees and investments.
