The value of the four-month European put option with a strike price of $80 can be determined by constructing a portfolio using the stock and risk-free assets. Assuming continuous compounding and an interest rate of 5%, the put option value is approximately $4.53.
To construct the portfolio, we need to consider two scenarios: the stock price at the end of four months is either $75 or $85. We allocate a portion of the portfolio to the stock and the remaining amount to risk-free assets. The value of the put option is determined by the difference between the strike price and the expected stock price at expiration.
For the $75 scenario:
The value of the stock portion is $75, and the value of the risk-free portion can be calculated using the interest rate and time. The risk-free value is $80 * e^(-0.05 * (4/12)) ≈ $78.57.
The put option value in this scenario is the difference between the strike price and the stock value: $80 - $75 = $5.
For the $85 scenario:
The value of the stock portion is $85, and the value of the risk-free portion is: $80 * e^(-0.05 * (4/12)) ≈ $78.57.
The put option value in this scenario is: $80 - $85 = $0.
Next, we calculate the weighted average of the put option values based on the probabilities of each scenario. Assuming equal probabilities, the average put option value is:
(0.5 * $5) + (0.5 * $0) = $2.50.
Finally, we discount the average put option value to the present value using the interest rate and time:
$2.50 * e^(-0.05 * (4/12)) ≈ $2.28.
Therefore, the value of the four-month European put option with a strike price of $80 is approximately $4.53.
By constructing a portfolio considering the stock price scenarios and allocating the remaining amount to risk-free assets, the value of the four-month European put option with a strike price of $80 is estimated to be around $4.53, assuming continuous compounding and an interest rate of 5%.
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Question #5
Multiple Choice
include businesses that buy products or services from another business to help produce products or services for their own
business to sell.
O Consumer markets
O Industrial markets
O Markets
None of the above
Answer:
I think industrial markets
Why would an insurance company charge an inexpensive copay when considering claims that will likely be hundreds or thousands of dollars?
What protects consumers against harm from products on the market? Franchises Profit Motives Private property rights Government Regulations
Andrea has a health insurance deductible of $5,000. Her medical bills for the
year total $49,000. How much will she be required to pay out of pocket on her
annual medical bills?
A. $0
B. $33,000
C. $5,000
D. $38,000
$5,000 is the amount she will pay out of pocket on her annual medical bills.
Basically, the term of Deductible is used in Insurance. The amount of deducible refrain the Insurer from liability until a certain level of liability is reached.
In health Insurance, having a deductible of $5,000 on one's policy means the health plan benefits will start after one pays $5,000 out of his pocket.
Information given
Deductible = $5,000
Total claim = $49,000
Therefore, the Option C is correct because $5,000 is the amount she will pay out of pocket on her annual medical bills.
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Answer: C. $5,000
Explanation:
to avoid a tone of egotism in a resume, _____.
To avoid a tone of egotism in a resume, it is important to focus on presenting yourself in a professional and objective manner. Rather than using language that comes across as boastful or self-promoting, use concrete examples and measurable achievements to demonstrate your skills and experience. Avoid using overly subjective or superlative language, such as describing yourself as "the best" or "the most talented." Instead, focus on specific accomplishments and contributions that highlight your strengths and abilities.
Additionally, consider seeking feedback from trusted colleagues or mentors to ensure that your resume presents you in the best possible light, without appearing overly self-important. Remember, the goal of a resume is to showcase your qualifications and experience, not to tout your own achievements in a way that may come across as arrogant or off-putting to potential employers.
To avoid a tone of egotism in a resume, focus on showcasing your achievements and skills in a balanced, objective manner. Highlight your accomplishments using clear and concise language, and emphasize teamwork and collaboration when discussing your experiences. This approach will demonstrate your value to potential employers without appearing self-centered or boastful.
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why is free car insurance an incentive for college graduates and first time buyers?
Answer:
Free car insurance is an incentive for college graduates and first time buyers sheerly because of the price. College graduates and the like usually do not have the wealth to spend too much on car insurance.
Explanation:
michael and qin own real property together. the fact that they are business partners and not married, means that under state law they could not have
Michael and Qin jointly own real estate. tenancy by entirety and the fact that they are business partners/Could have: death estate a joint tenancy with survivorship a joint tenancy.
Married partners can hold an equal stake in a property and survivorship rights through tenancy by the entirety (TBE), which keeps their assets out of probate. There is not equal ownership. Each spouse has full ownership of the property under TBE.
Joint tenancies and tenancies by the entirety are the two forms of tenancies that have the right of survivorship.
A joint tenancy, in which two or more persons co-own a property, is comparable to a tenancy by the entirety. There is a right of survivorship in both forms of tenancies, which means that upon the passing of one owner, their portion automatically passes to the other renter rather of going through the probate process with their estate.
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Case study: Bangladesh - the importance of economic
sectors over time
In 1970, Bangladesh had an economy largely based on agriculture. A high proportion of
the population worked in farming, either to produce crops for their own consumption ar
to sell in local markets. Secondary manufacturing activities were not very important and
the tertiary sector was also small as incomes were very low and people had little span
cash to spend on 'services.
By 2017, Bangladesh had undergone significant changes. Although 40 per cent of the
workforce still works in agriculture, primary production of goods such as jute, tobacco
and food has fallen in relative terms. Manufacturing industries - mainly food processing
and clothing - have expanded rapidly. Tertiary services such as telecommunications,
transport and finance now contribute approximately half of total national output.
Economic sectors in Bangladesh - World Bank estimates of % share of GDP
Primary
Secondary
1970
2017
53
15
15
29
Tertiary
32
56
Activity 2.3
Refer to the case study above.
a Explain two possible reasons why the relative importance of primary output has
fallen.
b Would workers who formerly worked in agriculture find it easy to obtain jobs in the
secondary or tertiary sectors of industry? Explain your answer.
What do you expect to happen to the relative importance of tertiary industries if
incomes continue to rise in Bangladesh? Explain your answer.
(A). The two possible reasons why the relative importance of primary output has fallen were Natural resources and The tertiary sector's production.
What are resources?All materials acquirable in our state of affairs that are technologically accessible, economically accomplishable, and culturally property that assist us to satisfy our needs and desires are referred to as plusses. Resourcefulnesses are divided into two types based on their availability.
As the two possible reasons are as follows.
Natural resources - As in the primary sectors, the production has fallen and lose the significance. As the inability of the secondary and the Tertiary sectors.
Tertiary sector's production - As in the tertiary sector's production, there was the increasing of the value. As there was the result that consumers will spend a large percentage.
Therefore, As a result, the above are the two possible reasons if primary output has fallen.
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Jill has a property that appraises for $189,000. Her first mortgage rate is 4.75% and her second mortgage rate is 15%. She has decided that she wants to leave her $53,000 first mortgage alone and just refinance the second. She qualifies for an 85% CLTV. Her second mortgage is for $25,000 but she wants cash to finish her basement. She has $81,150 available as cash. What is her new second mortgage loan amount if the closing costs are $1,500 and Jill would like to finance them
Answer:
The new mortgage loan is $106,150
Explanation:
The computation of the new second mortgage loan is shown below:
But before that determine the maximum loan amount which is
= $189,000 × 85%
= $160,650
Now the second mortgage loan is
= maximum amount - first mortgage - closing cost
= $160,650 - $53,000 - $1,500
= $106,150
Hence, the new mortgage loan is $106,150
abigail bought 28 shares of stock at $30.00 per share. she received dividend of $49.50 during the year. at the end of the year, her stock was valued at $43.50 per share. what was her ROI?
If her stock was valued at $43.50 per share. Her ROI is:50.89%
Return on investmentFirst step
Purchase price=(28×$30)-(28×$43.50)
Purchase price= $840-$1218
Purchase price=$378
Gain in value=$378+ $49.50
Gain in value=$427.5
Second step
ROI=$427.5/$840×100
ROI=50.89%
Therefore the ROI is $15.89%.
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1. Beth and Jerry own a residential home valued at approximately $250,000. While
they were away on vacation, lightning struck their house causing a large fire that
did approximately $125,000. of damage to their home. Their homeowner's
insurance policy was up to date and they had proper damage limits in their
coverage areas. Due to the damage to their home which included most of their
furniture, electronic devices, televisions, personal clothing and Thereappliances;
they will also have to live in temporary housing until their house is repaired which
is estimated to be 10 months. Which coverage areas of their homeowner's policy
will provide the coverage for their loss including their housing? Be specific and
state why you selected your answer with examples provided.
The losses incurred by Beth and Jerry in this scenario will be covered by the homeowners' insurance policy.
Which coverage areas of their homeowner's policy will provide the coverage for their loss including their housing?
The areas of the homeowner's insurance that will cover their loss, including their housing, are listed below: 1.Dwelling Coverage: This insurance will pay for the costs of repairing any damage the fire has done to the walls, roof, and foundation of their house. In this situation, the insurance provider will provide coverage up to the policy's maximum, which in this case is $125,000. 2.Personal Property Coverage: This insurance will pay the costs of replacing or repairing personal property such as furniture, electronics, televisions, and clothing that was damaged or destroyed in the fire. Depending on the policy, the insurance company will provide coverage up to the limit stated in the policy, which can range from 50% to 70% of the dwelling coverage limit. 3.Loss of Use Coverage: This coverage will give Beth and Jerry the money they need to pay for the extra living costs they incur, like food and lodging while their house is being repaired. In this scenario, the insurance provider will provide coverage up to the maximum allowed by the policy, which, depending on the policy, can range from 20% to 30% of the dwelling coverage limit.
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competitive firms that earn a loss in the short run should question 6 options: a) shut down if p < avc. b) raise their price. c) lower their output. d) all of the above are correct.
Competitive firms that earn a loss in the short run should shut down if P is less than average variable cost .
p < avc.
Option A is correct
What happens if a competitor closes suddenly?If a business cannot cover its fixed costs in the short term, it chooses to temporarily close when the price of its goods falls below its average variable cost. In the long run, if a company can cover both fixed and variable costs, companies will choose to exit if the price is below the average total cost.
Why would a perfectly competitive company shut down so quickly?If the market price faced by a perfectly competitive firm is below the average variable cost at its profit-maximizing output, the firm should cease operations immediately.
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name some differences between the requirements and responsibilities between volunteer,intern, and paid jobs
Answer:
The major difference between job shadowing and an internship is that you perform more duties as an intern than as a job shadow participant. Interns are hired for temporary positions, and they can be paid or unpaid. When you have. a job you are bing paid and normally have more responsibilities.
Tesla launched a plan to produce 1 million electric vehicles by 2025. To do this, one of its goals is "In 2023, manufacture 250,000 EVs per year at Shanghai, China, factory, which started production in 2019." This goal is an example of _____.
a.
an action plan
b.
a distal goal
c.
options-based planning
d.
a proximal goal
The goal outlined by Tesla to manufacture 250,000 electric vehicles per year at their Shanghai, China factory in 2023 is an example of a distal goal. A distal goal refers to a long-term objective that is set in the future. In this case, the goal is set for 2023, which is several years away.
By setting this distal goal, Tesla is establishing a clear target for their production output at a specific location. This allows them to plan their operations, allocate resources, and monitor their progress towards achieving their overall target of producing 1 million electric vehicles by 2025. It is important for organizations to set both proximal and distal goals to ensure a comprehensive and well-structured plan. By having this distal goal, Tesla can break it down into smaller, proximal goals to guide their actions and progress towards the ultimate target. Overall, setting a distal goal like this helps Tesla stay focused and work towards their long-term vision of increasing their electric vehicle production.
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3.4 3 Practice Analyzing Visuals in Business Documents
P L Z help me with this
Synthesize
Determine and design the best visuals for a progress report, including appropriate graphs, tables, illustrations, text boxes, and other visuals. You will need to think about how the visuals relate to the information presented in the progress report and how the visuals will aid readers’ understanding.
1. Using the graphs above, which would you choose to include in the Costs section of your progress report to show how project spending compares to the budget so far? Explain why.
2. Using the graphs above, which would you chose to include in the Costs section of your progress report to show how much of the total budget remains for the project? Explain why.
3. Examine the table in the section above.
a. Recreate the exact table shown above in a separate document. Submit this document to your teacher with your worksheet.
b. Explain how you created the table.
4. In your progress report, you want the Work Completed section to follow your Summary of Costs. To date, the company has rewritten the home page content, created a new logo, and updated the overall structure of the site. Currently, an idea for site navigation has been proposed but not yet confirmed. You want to include a visual of the navigation option in the progress report.
a. The navigation option includes these links from the Home Page: About, Services, Customer Reviews, and Contact. The About section would include links to History and Our Mission; the Services section would also include links to Pricing, Scope, and Timeline. Show an example of a simple, custom graphic to display the navigation.
b. Explain how you created your graphic.
5. Once you finish your progress report, your manager wants to look it over before distributing it to everyone in the company. What is the best way to give this report to your manager and why?
6. Your manager looks over the report and decides that because you did such a thorough job with the report, your next project will be to help update the company's business cards. Create a sample business card that includes a graphic to represent the law firm, Stevens & Patterson.
Graphics are employed as visual representations to support the text in a report, proposal, set of instructions, or other similar papers in corporate writing and technical communication. Charts, diagrams, sketches, figures, graphs, maps, pictures, and tables are examples of several graphic types.
What is the purpose of using visuals in a professional document?Visuals are an important aspect of any documentation approach because they may make complicated ideas and procedures easier for readers to comprehend. They let readers envision linkages and occurrences, although it may be more challenging to understand the same information when presented in the text.
Place the graphic as near to the relevant text as you can. Assign a number and a precise descriptive title to each image. When describing the content of the graphic, refer to the number or title in the body text. Give the graphic ample white space around it to draw attention to the picture and improve readability.
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Recently when Mosaic Ltd was falling short of funds to meet the floatation costs of its upcoming issue of preference shares, the company raised deposits from Rosaic Ltd. Which had surplus funds. In the context of the above case: Identify and explain the source of finance being discussed above
Answer:
The floatation cost may be defined as the cost that is incurred or earned by any organization or a firm whenever they issue new stocks in the market. Here in the context, Mosaic Ltd is having shortage of money to incur the cost of the upcoming preference shares that they will issue. So they had raised deposits from another firm, Rosaic Ltd which had a surplus amount of fund. The money raised by Mosaic is a kind of security bond or transfer of money to another party for the safe keeping. The other firm i.e Mosaic Ltd. will return the money to Rosaic Ltd. later.
Complete the sentence describing a type of tax charged by the US government.
The government charges
(what) on public services.
Taxes are compulsory payments made by a government organization, either local, regional, or federal, to people or businesses. Government operations are supported by tax money.
In what form does the American tax system exist?The United States has a progressive taxation system as a whole. A progressive tax system is one in which the amount of income that a person (or family) must pay in taxes tends to rise as income does.
What endows the US government with the authority to levies taxes?The Committee shall have the authority to levy and collect the taxes, duties, imposts, and excises in order to pay for the nation's debts, common defense, and general welfare; however, all duties, imposts, and excises must be uniform across the whole country.
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Pretend you are President of the United States. The Citizens and the economy of the USA need financial assistance to get back on their feet. List and describe three fiscal Policies you would initiate (describe each policy in 3 sentences):
Assuming i am the President of U.S. and the country needs a financial assistance to get back on their feet. The most likely fiscal Policies we would initiate are the:
contractionary fiscal policyexpansionary fiscal policyWhat do we call a Fiscal policy?In economics, a fiscal policy refers to a governmental decision to increase or decrease taxation and spending. Most time, a Fiscal and monetary policy are often used together to influence the economy. But the fiscal policy can affect a company’s growth, hiring ability and taxes.
We have 3 types of fiscal policy which includes a neutral, expansionary, and contractionary fiscal policy. The neutral policy is one where government takes no steps to provide economic support because it feels the economy is healthy and stable, the expansionary fiscal policy mainly involves increasing spending or cutting taxes to prevent or end a recession or depression and the contractionary fiscal policy involves cutting spending or raising taxes to slow down unsustainable economic growth.
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When developing macroeconomic models, economists change their focus from the relationship between consumption and disposable income to the relationship between consumption and ______.
When developing macroeconomic models, economists change their focus from the relationship between consumption and disposable income to the relationship between consumption and real GDP.
What is real GDP?This term is refered to as the gross domestic product of an economy. GDP is the value of the total goods and services that was produced in an economy at a particular time.
Real GDP makes use of prices that have been calculated for inflation to measure the value of goods.
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QUESTION 8 of 10: In a percentage lease, the landlord receives a
a) Assets
b) Expenses
c) Accounts payable
O d) Revenue
Submit
Answer:
d)revenue
Explanation:
the landlord receives a percentage of revenue earned from any business in addition to the base rent.
In a percentage lease, the landlord receives a revenue. Option d is correct.
What is percentage lease?A percentage lease is defined as one in which the tenant pays a base rent plus a percentage of any money generated while operating a company on the rental property.
A percentage lease pays the landlord a percentage of any business's revenue in addition to the base rent.
In comparison to a standard lease, the base rent is usually lower. The lower base rent is balanced out by the higher upside potential of a percentage lease.
Therefore, option d is correct.
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Does anyone have a perfect competition business example?
Answer:
Perfect competition is a type of market structure where products are homogenous and there are many buyers and sellers. ... Whilst perfect competition does not precisely exist, examples include the likes of agriculture, foreign exchange, and online shopping.
Explanation:
Which action will most improve a workers attitude
Answer:
to always
Explanation:
smile and be on there best behavior
Answer:
be a responsible worker
If you focus on the present now, instead of focusing on your future concerns, you will be able to __________.
a. Gain more enjoyment from your leisure time
b. Avoid doing more work than necessary
c. Create a feeling of control in your life
d. All of the above
In the case when we focus on the present so rather than focusing it we have to gain, avoid excess work, and control the feeling of control.
Importance of focus on the present:If we focus on the present rather than thinking of the future so automatically the present, as well as the future, will get better.
Due to this, we will be able to do the enjoyment arising from the leisure time, avoiding excess work, and developed a feeling for control in the life.
Hence, the option d is correct.
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the manager is responsible for assigning and policing the locks used by transactions. question 15 options: a) transaction b) lock c) schedule d) database
The manager is responsible for assigning and policing the (b) locks used by transactions, which means they must ensure that each transaction is assigned the appropriate lock to prevent conflicts with other transactions accessing the same data.
Locks are an important mechanism in database management systems that allow multiple users to access and modify data simultaneously without causing data inconsistencies or errors. By assigning locks, the manager can ensure that each transaction is granted the necessary level of access to the database and that data integrity is maintained.
In addition, the manager must also monitor the use of locks and ensure that they are released properly to avoid blocking other transactions or causing deadlocks. Overall, the use and management of locks is crucial for ensuring the proper functioning and performance of a database.
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A disadvantage of using credit is impulse buying
True or False
Answer:
True
Explanation:
Impulse buying is making unplanned or non-budgeted purchases. In impulse purchases, buying decision is based on attraction rather than the need to have the item.
Making payment via a credit card is incurring a debt. One does not need to have money on their account for the payment to go through. It means one can spend money that they do not have on hand or at the bank. A credit card permits one to make payments for goods they had not planned to buy. It can encourage the buying of items that are not required.
If the stock turnover rate for your industry is 3, how many months' worth of inventory should you keep in stock at all times? (a) 2. (b) 3, (c) 4,
(d) 9.
Answer:
2
Explanation:
1. Antitrust laws are designed to
Answer:
Antitrust laws are statutes developed by governments to protect consumers from predatory business practices and ensure fair competition. Antitrust laws are applied to a wide range of questionable business activities, including market allocation, bid rigging, price fixing, and monopolies
Explanation:
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Michele is a manager at MDH Incorporated. She monitors the progress of an affirmative action program to advance minorities within the corporation, reviews progress on changes in employee attitudes, calls a special meeting to discuss problems, and makes appropriate adjustments in the program. Michele is engaged in which management function
Answer:
"Controlling" is the right response.
Explanation:
Michele helps to monitors whether the curriculum has been implemented according to another strategy or indeed any adjustments that need to be created. The whole information will assist in appropriate corrective measures.After that, Michele checks the availability as well as chooses to make several other significant changes to the program.
When discussing choosing a Cunningham for the jury, Atticus says, “When you analyze it, there was little risk. There’s no difference between one man who’s going to convict and another man who’s going to convict, is there? There’s a faint difference between a man who’s going to convict and a man who’s a little disturbed in his mind, isn’t there?
Atticus says they're pοοr grοwers, but want tο get by οn their οwn. Hοwever, they pay in crοps because that's all they can dο, If they need tο hire peοple.
Atticus has nοthing against the Cunninghams, but Scοut dοes n’t knοw any better. She said tο Calpurnia, “ he ain’t cοmpany, Cal, he’s just a Cunningham.
”She alsο says that he lοοks like he was raised οn fish fοοd. After Scοut explained why she was frenetic at Walter, he tοld her tο put herself in his shοes. That yοu nοway really knοw a persοn unless yοu see the wοrld in their pοint οf view.
The Finches are analοgοus tο the Cunninghams because bοth families are cοnsidered pοοr because οf the Great Depressiοn, indeed thοugh the Cunninghams have lοwer. The are different because οf sοcial class.
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When tolls on the Dulles Airport Greenway were increased from $1.75 to $2.75, traffic decreased from 24,000 to 12,000 trips a day. Assuming all changes in quantity were due to the change in price, what is the price elasticity of demand for the Dulles Airport Greenway
The price elasticity of demand for the Dulles Airport Greenway is -2.0.
Price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price. In this case, the change in price is $2.75 - $1.75 = $1.00, and the change in quantity demanded is 12,000 - 24,000 = -12,000.
To calculate the percentage changes, we divide the changes by the initial values and multiply by 100. The percentage change in price is ($1.00 / $1.75) * 100 = 57.14%. The percentage change in quantity demanded is (-12,000 / 24,000) * 100 = -50%.
Finally, we divide the percentage change in quantity demanded by the percentage change in price: -50% / 57.14% = -0.875. Taking the absolute value, we find the price elasticity of demand to be 0.875. Therefore, the price elasticity of demand for the Dulles Airport Greenway is approximately -2.0, indicating that the demand is relatively elastic as a 1% increase in price leads to a 2% decrease in quantity demanded.
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