The value of European Put option is 9.
<h3>What is Put option?</h3>
Under derivative securities market an option whose value depend on the underlying item where delivery is not made generally & net settlement done by squaring off the position and depends on the volatility of market.
Put Option is a bearish school of thought where investor thinks the market will decline & the value will be below the exercise price.
In hedging the position of investor make certain not better, therefore the value of put option lies between zero or difference value among the spot price & exercise price with discounting annual market interest rate:
Spot = 70
Exercise = 65
Future Price = 70 × 80% = 56
Rate = 4 % Compounded semi annually.
Value of Put = Spot Price - Exercise Price
= 56 - 65
= 9
Thus the value of put option will be 9 (65-56).
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Return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.
<h3>
What is the return on investment?</h3>
- A ratio between net income and investment is known as return on investment or return on costs.
- A high ROI indicates that the returns on the investment outweigh the costs.
- ROI is used as a performance metric to assess an investment's effectiveness or to compare the effectiveness of multiple distinct investments.
<h3>What are profits?</h3>
- The difference between an economic entity's revenue from its outputs and the opportunity costs of its inputs is what is known as a profit.
- It is equivalent to total income less total expenses, which includes both direct and indirect expenses.
<h3>What are assets?</h3>
- Any resource that a company or other economic organization owns or controls is considered an asset in financial accounting.
- Anything that has the potential to provide positive economic value qualifies.
- The ownership value that can be turned into cash is represented by assets.
Therefore, return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.
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Answer:
Trina's Trikes have equity of 5.03 million
Explanation:
Debt to equity ratio is the rate of debt as compared to equity of the firm.
We can calculate the amount of equity by using formula of debt to equity
Debt to equity = Total Debt / Total equity
1.83 = 9.2 million / Total equity
Total Equity = 9.2 million / 1.83
Total Equity = 5.03 million
Answer:
Yes
Explanation:
In the context, it is given that I am working as a manager in a financial planning office. One of my employees posted in the twitter that he need $ 500 to pay for his house rent for the month.
I would call the employee and would ask him to remove the post from the social media account as it might hamper the business of our company and sends a negative signal to the customers about the efficiency of the employees.
If the employees of the financial planning office cannot plan his spending and savings, then how the customers will have faith that our office will help them plan their money. It will have a negative effect to our reputation of the company and so I will ask him to remove it form the social media account and prevent anybody from doing this in the future.
Answer:
<u>The number of responses if a discount is offered would be 33,250</u>
Explanation:
1. Let's review the information given to us to answer the question correctly:
Number of responses you had without offering discount = 19,000
Percentage of increase if you offer a discount = 75%
2. If you mail the same size list and offer discount how many responses would you expect?
Number of responses if a discount is offered = Number of responses you had without offering discount * (1 + 0.75)
Replacing with the real values, we have:
Number of responses if a discount is offered = 19,000 * 1.75
Number of responses if a discount is offered = 33,250
<u>The number of responses if a discount is offered would be 33,250</u>
