Answer:
you should hold <u>76</u> shares of stock per 100 put options to hedge your risk.
Explanation:
Current stock price, S = $85
Risk-free rate of return, r = 5%
Standard Deviation, v = 25%
Exercise price, X = $90
expiration date, t (in years) = 30 days = 1 month = 1/12 = 0.083333 years
The option price (OP) is given by the formula:
![d_1 = [ln(S/X) + (r + v^{2} /2)t]/vt^{0.5}\\d_1 = [ln(85/90) + (0.05 + 0.25^{2} /2)*0.08333]/(0.25*0.08333^{0.5})\\d_1 = -0.6982](https://tex.z-dn.net/?f=d_1%20%3D%20%5Bln%28S%2FX%29%20%2B%20%28r%20%2B%20v%5E%7B2%7D%20%2F2%29t%5D%2Fvt%5E%7B0.5%7D%5C%5Cd_1%20%3D%20%20%5Bln%2885%2F90%29%20%2B%20%280.05%20%2B%200.25%5E%7B2%7D%20%2F2%29%2A0.08333%5D%2F%280.25%2A0.08333%5E%7B0.5%7D%29%5C%5Cd_1%20%3D%20-0.6982)
Using the pro-metric calculator for the cumulative normal distribution:
N(-d1) = N(- (-0.6982)) = N(0.6982) = 0.75747
N(-d2) = N(-(-0.7704)) = N(0.7704) = 0.77947
![OP =[ 90e^{(-0.05*0.08333)} * 0.77947] - (85*0.75747)\\OP = 5.48](https://tex.z-dn.net/?f=OP%20%3D%5B%2090e%5E%7B%28-0.05%2A0.08333%29%7D%20%2A%200.77947%5D%20-%20%2885%2A0.75747%29%5C%5COP%20%3D%205.48)
Note that N(-d₁) = 0.76
This means that 76/100 (i.e to hedge your risk, you should hold 76 per 100 put options )
Answer:
The correct answer is option B,the business portfolio is the one that best fits the company's strengths and weaknesses to opportunities in the environment.
Explanation:
SWOT analysis is a performance appraisal technique that is used in analyzing organization based on its strengths and weaknesses (in internal environment) as a means to exploring opportunities and reducing threats from external environment.
The best a company can offer its customers in terms of products and services is that combination that maximizes it strengths and opportunities while also minimizing its weaknesses and threats.
Answer:
"C"
Explanation:
A system administrator is a person that maintains ,configures and ensure a reliable function of a computer system. He monitors the performance , functionality , resources and security of a computer system to meet the needs of users.
In his function as an administrator , he regularly acquire or update computer component , designs and functions using various techniques and approach to ensure that a computer meet the need of the users and the organization.
The approach adopted to resolve issues are relative to the issues to be corrected . In the situation where an existing account has to be kept away from new users , the best approach approach. is to remove the customer record type as an Assigned record type in the user's profiles and permissions setting
25 minutes would probably be a short term goal. If it takes someone only 25 minutes to do, that would be a pretty short and easy goal. It COULD be 25 weeks. That sounds pretty long for a "short term" goal though.
~Silver (I don't care about brainly though. Give it to however. Greedy people)
