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2 years ago

Meaning of creative thinking

2 answers:

8 0

"Creative thinking is a skill which lets you consider things from a fresh perspective and different angles. It's an inventive thought process which results in surprising conclusions and new ways of doing things. "

Komok [63]2 years ago

3 0

Answer:

the mental processes leading to a new invention, solution, or synthesis in any area. A creative solution may use preexisting elements (e.g., objects, ideas) but creates a new relationship between them.

Explanation:

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Universal Exports is expected to pay the following dividends over the next four years: $8, $4, $2, and $2. Afterwards the compan

tester [92]

Answer:

Maximum price to be paid for the stock = $12.43

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

<em>Hence the value of the stock would be the present value of its future dividend discounted at 15%</em>

Year PV of dividend

1 8 ×1.15^(-1)

2 4 × 1.15^(-2)

3. 2 × 1.15^(-3)

4 2 × 1.15^(-4)

PV of dividend = (8 ×1.15^-1) + (4 × 1.15^-2) + (2 × 1.15^ -3) + (2× 1.15^-4) = 12.439

Maximum price to be paid for the stock = $12.43

4 0

3 years ago

You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays n

natka813 [3]

Answer:

$18.18

Explanation:

Calculation to determine the call option's value using the two-state stock price model

Based on the information given since the two possible stock prices are: S+ = $130 Increase and and S- = $70 decrease which means that If the exercise price is the amount of $100 the first step will be to determine the corresponding two possible call values.

First step is to determine the corresponding two possible call values.

Hence, the corresponding two possible call values are:

Cu = ($130-$100) and Cd = $0

Cu = $30 and Cd = $0

Second step is to Calculate the hedge ratio using this formula

Hedge ratio= (Cu - Cd)/(uS0 - dS0)

Hedge ratio= (30- 0)/(130 - 70)

Hedge ratio=30/60

Hedge ratio= 0.50

Third step is form the cost of the riskless portfolio and end-of-year value

Cost of the riskless portfolio = (S0 - 2C0)

Cost of the riskless portfolio = 100 - 2C0

End-of-year value =$70

Fourth step is to calculate the present value of $70 with a one-year interest rate of 10%:

Present value=$70/1.10

Present value= $63.64

Now let estimate the call option's value by first Setting the value of the hedged position to equal to the present value

Call option's value=$100 - 2C0 = $63.64

Hence,

C0=$100-$63.64/2

C0=$36.36/2

C0=$18.18

Therefore the call option's value using the two-state stock price model will be $18.18

3 0

2 years ago

The purchaser of a tbond futures contract priced at 101-16 at the time of the sale agrees to deleiever 100,000 facevalue treasur

jek_recluse [69]

Answer:

The answer is "True".

Explanation:

Please find the complete question in the attached file.

It implies that its price of the bond is 101-16, which is to say

$\to 101 + \frac{16}{32}\\\\\to \frac{3232+ 16}{32} \\\\\to \frac{3248}{32} \\\\\to 101.5$

Each bond is thus stated as $101.5 \%$ face value

$\to 101.5\% \times 100,000 \\\\\to 101,500.00$

That's why this statement is true.

5 0

3 years ago

Which of the following types of coverage would pay for damage to your automobile in an accident for which you were at fault?

maw [93]

Which of the following types of coverage would pay for damage to your automobile in an accident for which you were at fault? B. Collision

Joe Johnson needs surgery for appendicitis. which part of his basic insurance coverage should help pay this surgery? B. Surgical Expense Insurance

3 0

3 years ago

What does the IS curve show? A. It shows equilibrium points in the goods marketlong dashthe combinations of the real interest r

Mariana [72]

Answer:

Option (A) is correct.

Explanation:

Investment spending curve refers to the curve shows various combination of real interest rate and the equilibrium output. There is a negative relationship between the real interest rate and output which means that an increase in the real interest rate will reduce the output of an economy and if there is a fall in the real interest rate then as a result there is an increase in the output.

7 0

3 years ago

Meaning of creative thinking​

Meaning of creative thinking