Answer:
4
Explanation:
The computation of the process capability index is shown below:
Data provided in the question according to the question is as follows
USL = 27
LSL = 21
X = (21 +27) ÷ 2 = 24 (take the average)
Standard Deviation: 0.25
After placing the above values, the process capability index is 4
hence, the process capability index, if they were to center the mean is 4
The value of a European call option on the stock with strike k=102k=102 is: 2.03529 and the amount of dollar to invest in the cash account is $28.694
<h3>European call option</h3>
Given:
R=1.02
S0 = 100
u=1/d= 1.05
Strike(k) = 102
First step
Upside Price = u × S0
Upside Price = 1.05 × 100
Upside Price = 105
Downside Price = S0/u
Downside Price= 100×1/1.05
Downside Price= 95.238
Upside Payoff = upside price - strike rate
Upside Payoff =(105 - 102)
Upside Payoff = 3
Second step
Upside probability=(r - q) / u - d
Upside probability=1.02- (1/1.05)÷ 1.05- (1/1.05)
Upside probability=0.0676190/0.0976190
Upside probability=0.692
Probability of downside = 1 - p(upside)
Probability of downside = 1 - 0.692
Probability of downside = 0.30731722
Third step
European call option=[0.692×3+0.30731722×0]×1/100
European call option=2.03529
Let B represent the Dollar to invest
105D -1.05B=3
95.238D-1.02B=0
Solving for B
B=$28.694
Therefore the value of a European call option on the stock with strike k=102k=102 is: 2.03529 and the amount of dollar to invest in the cash account is $28.694
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Answer:
=$5,533.33
Explanation:
James took four weeks of paid leave. It means earned his salary but missed out on overtime earnings.
His hourly pay is $25; overtime pay will be $50 per hour
Monthly qualifying income is similar to average monthly income. The term is used mostly in credit assessments.
regular monthly income for James equal to yearly pay divide by 12 months
=$52,000/12
=4,333.333
Overpay income
6 hours per week x 4 weeks per month x $50 per hour
=6 x 4 x $50
=24 x $50
=$1200
Monthly qualifying income = 4,333.33 + 1200.00
=$5,533.33
Answer:
A. Received cash by issuing common stock
Debit: Cash
Credit: common stock
B. Received cash for services to be performed in the future.
Debit: Cash
Credit: unearned revenue.
C. Paid salaries payable
Debit: salaries payable
Credit: cash
D. Provided services on account.
Debit: accounts receivable
Credit: service revenue
E. Paid cash for operating expenses
Debit: operating expenses
Credit: cash
Explanation:
A. Received cash by issuing common stock
Debit: Cash
Credit: common stock
B. Received cash for services to be performed in the future.
Debit: Cash
Credit: unearned revenue.
C. Paid salaries payable
Debit: salaries payable
Credit: cash
D. Provided services on account.
Debit: accounts receivable
Credit: service revenue
E. Paid cash for operating expenses
Debit: operating expenses
Credit: cash
Answer: The sum of cash, short-term investments and net receivables divided by current liabilities
Explanation: The acid test ratio, also known as the quick ratio, is a liquidity ratio that is used to determine the ability of a company to pay its current liabilities if it rises immediately. It is considered to be more stringent ratio than the current ratio.
It is concluded by dividing those current assets that can be converted into cash immediately with the current liabilities of the company.
Therefore, from the above we can conclude that the correct statement is D.
