Peoples budgeting equation is typically:
Income - Budget = Savings
It should be:
Income - Savings = Budget
Answer:
Methodology.
Explanation:
A methodology the systematic procedure and technique used to identify, process and analyse methods that can be applied in a particular situation.
Methodology gives an understanding of the type of method that will be most appropriate to solve a problem.
For example a methodology could involve the following methods to solve a problem: quantitative surveys, focus groups, and qualitative case studies.
Answer:
On the ex date, the contracts will show as:
10 ABC Jan 60 Calls
The customer must exercise call contracts to buy the stock prior to the Ex-Date
Explanation:
The reason is that if the customer is not exercising the call contracts then it will not be able to receive the stock dividend. Furthermore, the OCC doesn't adjust the contract because of the dividend announcement prior to exercise of contract. This means it will only adjust if the contract is exercised.
The settlement of the exercise takes around 2 business working days, hence the customer must exercise the option 2 days earlier to the ex-date.
