Define option price. Explain why the option price of a policy might differ from the expected surplus generated by the policy.
Explanation:
Options prices, known as premiums, are composed of the sum of its intrinsic and time value. Intrinsic value is the price difference between the current stock price and the strike price. An option's time value or extrinsic value of an option is the amount of premium above its intrinsic value.
regional economic intergration in india
Answer:
the india is regional economic in EST asia
2. It is estimated that over 100,000 students will apply to the top 30 MBA programs in the United States this year. a. Using the concept of net present value and opportunity cost, explain when it is rational for an individual to pursue an MBA degree. b. What would you expect to happen to the number of applicants if the starting salaries of managers with MBA degrees remained constant but salaries of managers without such degrees decreased by 20 percent? Why?
It will be rational for an individual to pursue an MBA degree when the net present value (NPV) is positive.
In order for the individual to know if tp pursue the degree, the net present value should be calculated and when it's positive, then the degree should be pursued.
In a situation where the NPV is negative, the degree should not be pursued. When the starting salaries of managers with MBA degrees remained constant but salaries of managers without such degrees decreased by 20 percent, the number of applicants for the MBA degree will increase.
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What value is usually
associated with the term
(Y)"?
A. Interest Rate
B. Real Output
C. Equilibrium Price
D. M1
Answer:
B real output. Have a great Friday. Enjoy the weekend.
what is enterprenuaship
Answer:
A person who undertakes the risk of starting a new business venture is called an entrepreneur. An entrepreneur creates a firm to realize their idea, known as entrepreneurship, which aggregates capital and labor in order to produce goods or services for profit.
Explanation:
Compare and contrast the strategic planning process in public and non-profit organisations.
A public organization is one which focus on services to the public including public authority, state agency etc
A non-profit organization is one which focuses on a social cause (like religion, research, education) and not driven by profit.
In comparison, both the public and non-profit organisations uses the strategic plan to establish goals as well as to review operations.In contrast, the strategic planning in public and non-profit organisations is different because public organization is guided by government directives whereas the non-profit organization is guided by their mission and purpose.Read more about organization
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Consider a favorite product or service of yours. What is it you value, and what matters most? Can you develop clear requirements from this? And Categorize your requirements revealed through the value you perceive into ‘Basic Quality’, ‘Spoken Performance’, and ‘Excitement Quality’ features, 2-2) And Taking your example from questions 1 put yourself in the place of the supplier; how might you access customer requirements such as the ones you noted?
Based on the information given, a favorite product of mine will be a mobile phone and it provides me with several values.
The values that can be gotten from the mobile phones will be:
I can make calls and send text messages.I can manage professional meetings and emails.I can make purchases on online stores. I can capture photos and videos.Also, the most important feature of the mobile phone that I like is the camera and its connectivity.
Lastly, the requirements that I like in a phone include camera features, clarity of calls and ease of access.
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Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $128.297 million Total Common Stock of $6.350 million Cash of $10.050 million Retained Earnings of $45.255 million. What were the Digby Corporation's total assets
Based on the information given Digby Corporation's total assets is:$179.902 million .
Using this formula
Total assets = Total liabilities + Shareholders’ equity
Total assets= Total liabilities + ( Total common stock + Retained earnings)
Where:
Total liabilities= $128.297 million
Total common stock= $6.350 million
Retained earnings= $45.255 million
Let plug in the formula
Total assets= $128.297 million + ( $6.350 million + $45.255 million)
Total assets= $128.297 million +$51.605 million
Total assets= $179.902 million
Inconclusion Digby Corporation's total assets is:$179.902 million .
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Draft an inquiry letter for purchase of 10 units of IBM P4 computers and 2 units of Lx 300 Epson printers to Kathmandu Computers and Engineering Kathmandu.
Based on writing standards, the inquiry letter for purchase should begin with the sender's address and be written like a formal letter.
Structures of Letter of Inquiry.The sender's address should be written at the beginning of the letter, followed by the receiver's address.The letter must contain all the elements of the enquiring item, including their quantities.There must be the date and address of the receiver included.The letter's subject must be written clearly before the letter's content.Ensure you provide the expected salutation at the beginning of the letter.Write clearly and straightforward.Provide reasons and inquiry descriptions.Add your signature, name, and designation at the end of the letter.Hence, in this case, it is concluded that there are specific ways to write a good inquiry letter.
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During the external audit of Indico Ltd, which provides industrial maintenance services, the audit senior discovered that the operations director, with the approval of the other directors of Indico, had instructed employees to breach statutory health and safety regulations so that the company would benefit from cost savings. Explain the audit senior’s and the audit firm’s responsibilities in respect of this matter.
Basically, an auditing is done to examine an organization's financial records to determine the accuracy and to check if they are prepared in accordance with applicable accounting rules.
An external audit is the auditing done by an independent accountant to examine the financial records of the firm,Since the audit senior (external audit) discovered that the firm instructed their employees to breach statutory health and safety regulations to save cost, then, it is apparent that a rule have been violated.In conclusion, in this case, the audit senior is required to report the discovery to necessary department for proper sanction and the audit firm is at responsinility to prove it does not default to safety regulation.
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Harris Teeter is advertising a sale on hamburger buns. What is the impact on the demand for hamburgers
The impact on the demand for hamburgers when Harris Teeter advertised a sale on Hamburger buns is an increase in the demand for hamburgers.
A sale is an activity where goods are sold at discounted prices. When a sale is advertised, people are most likely going to seize the opportunity to purchase goods at discounted amounts.
There will thus be an increase in the demand for goods.
So, the impact on the demand for hamburgers when Harris Teeter advertises a sale is an increase.
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Cultural Change
The General Duty Clause imposes requirements on
Answer:
employer
Explanation:
The general duty clause imposes requirements on employer to provide every employee with a place of employment that are causing or a likely to cause death or serious Physical harms.
Click this link to view O'NETS Wages and Employment section for Licensing Examiners and Inspectors. According
to O'NET What is the projected growth for this career belveen 2019 and 2029
little or no change
average
slower than average
faster than average
According to O'NETS Wages and Employment section for Licensing Examiners and Inspectors, the projected growth for this career between 2019 and 2029 is D. faster than average.
The career growth rate for Licensing Examiners and Inspectors is projected to be 10% year-on-year. This growth rate cannot be described as little or no change, average, or slower than average.
Thus, according to O'NETS Wages and Employment section for Licensing Examiners and Inspectors, the projected career growth between 2019 and 2029 is Option D.
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advantages of apron in points
In 2015 Paul Gauguin's painting When Will You Marry sold for $300 million. Portray this sale in a demand and supply diagram and comment on the elasticity of supply. Comedian George Carlin once mused, "If a painting can be forged well enough to fool some experts, why is the original so valuable?" Provide an answer.
Answer:
Answer: The original painting is valuable because there is demand tor it in the market The demand is derived demand because the buyer wants to show his status in the society, and it could only be possible by associating with it. He is also the ones
Because there is a market for it, the original painting is valuable. The buyer wants to demonstrate his social standing, which drives demand.
What is Law of demand ?According to the law of demand, the quantity bought varies inversely with price. In other words, if the price increases the demanded quantity decreases.
He is also the person who paid the most to reserve the painting. The individual who values it the highest will get it if there is only a limited supply on the market. Some people strongly prefer the original picture and would not pay for it even though there are duplicates on the market.
The demand will then increase significantly. The original picture is represented by the demand curve in the aforementioned graph. when there is only one surviving original master work At equilibrium, the market's price is high.
Hence the original painting's demand is high and quantity is less, that's why it is sold for $300 million.
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State one effect the great depression had on many Americans?
Answer:
Great Depression
EXPLANATION:
I hope this helps (:
In which 2 ways can you create a customized template for a project in qbo
The two ways you can create a customized template for a project in QuickBooks online are as follows:
1. Use an inbuilt project template and then customize it to your style. This method involves the use of a standard or custom template. Then, you can adjust the tasks, due dates, and assignees as required.
2. Create a new project template by customizing it to match your needs.
Thus, the two ways of creating a project template in QuickBooks online as stated above are not complicated.
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U.S. Treasury bills are available for purchase this week at the following prices (based upon $100 par value) and with the indicated maturities:
a. $97.25, 182 days
b. $95.75, 270 days
c. $98.75, 91 days
Calculate the bank discount rate (DR) on each bill if it is held to maturity. What is the equivalent yield to maturity (sometimes called the bond-equivalent or coupon-equivalent yield) on each of these Treasury bills?
Bondholders tend to offset the effects of selfish strategies implemented by shareholders by: Multiple Choice increasing the interest rate on monies loaned to the firm. agreeing to reduce the interest rate on existing loans. restructuring their loans to provide additional time to the firm to make repayment. agreeing to reduce the outstanding principal balances on their loans. subordinating their bankruptcy position to the shareholders.
It should be noted that bondholders offset the effects of selfish strategies that are implemented by shareholders by A. increasing the interest rate on monies loaned to the firm.
A bondholder simply means an individual that's owning a bond that was issued by the government or a public company.
The effects of selfish strategies that are implemented by shareholders are offset by increasing the interest rate on monies loaned to the firm.
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How does the value of the cars produced by the Japanese company within the United States impact the United States' Gross National Product (GNP), and why?
Answer:
:)
Explanation:
The cars it produces in the U.S. are added to U.S. GDP, but not U.S. GNP, as these cars use domestic factors of production (labor and resources), but are produced by a foreign nation. Conversely, the values are added to Japan's GNP, but not Japan's GDP.
Rachel borrows money from her bank to buy a car. What type of bank service
is Rachel using?
O A. Credit card
B. Checking account
C. Savings account
D. Loan
Answer:
D
Explanation:
A loan refers to money borrowed by people or organisations from the bank
The type of bank service which Rachel is using in order to buy a car is 'loan.'
What is a bank?A bank, an financial institute that deals in money and its substitutes. A bank accepts deposits from the public and then creates a demand deposit while also simultaneously providing loans. Thus, banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).
What services do banks provide?Banks provide a lot of services to its customers. These services intends to attract customers. Such services provided by the banks are- giving loans, credit and debit cards, discounting on bills of exchange, cheque payments, digital financial services, and even personal services.
What do you mean by a loan?A loan is a sum of money that one or more individuals or companies borrow from banks or other financial institutions so that they can manage planned or unplanned events financially.
When a loan is borrowed from a bank or other financial institution it has to be paid back, usually together with an extra amount of money called interest, that you have to pay as a charge for borrowing within a given period of time. Thus, loans provide liquidity to businesses and individuals, and so they are a necessary part of the financial system.
Hence, option D is correct.
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Concord Company buys land for $49300 on 12/31/17. As of 3/31/18, the land has appreciated in value to $50200. On 12/31/18, the land has an appraised value of $51500. By what amount should the Land account be increased in 2018
Based on the information given, it can be noted that revaluation of assets isn't applicable to land. Therefore, the amount will be $0.
Revaluation of assets simply mean the change in the market value of assets. It can either be increasing or decreasing.
From the information given, the amount that the land account be increased in 2018 is $0 because revaluation of assets isn't applicable to land.
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Which of the following accounts would Carlo credit when a customer who bought three dozen pastries and muffins from his bakery paid $55 in cash?
Based on the nature of the transaction described above, the account that would be credited is Revenue
Revenue is the amount that is received when a person or company sells a good or service.
By selling the pastries, Carlo jus earned some revenue. This revenue should therefore be posted to the revenue account. When revenue increases - as it just did - it is credited.
In conclusion, Carlo should credit the Revenue account.
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A decision-maker faces the following decision under conditions of uncertainty. This decision-maker has $1 million in assets. Most of those assets, $750,000, are the individual’s equity in his house. The remaining $250,000 are absolutely secure. Unhappily, there is a risk that the individual’s house will burn down in a fire, which would be a total loss of the $750,000. The individual can insure his house against the loss from this fire. The premium for the insurance is $40,000, and it will insure the individual completely; that is, if the individual chooses to purchase this insurance policy, his assets will be $960,000, whether or not there is a fire. (There is no mortgage on the house, so $750,000 is the full amount paid by the insurance company.) The probability of a fire is 0.05.
Required:
a. What is the expected net earnings, the premium less the expected amount paid out to the client, to the insurance company from this policy?
b. If the individual in question were risk neutral, would he buy this insurance policy?
c. If the individual in question is an expected utility maximizer, with the utility function u(a) = where a is the individuala's total assets, would this individual buy the insurance?
Answer:
The correct Answer Is C,
Explanation:
I got It Right :)
A- The net earnings of the individual in question will be $710000 after the individual's claim for loss by fire is settled by the insurance company. B- Yes, he would buy the insurance if he were risk neutral.
C- Yes, the individual will buy the insurance policy if he were a expected utility maximizer as he would want to claim complete settlement of this amount to be claimed in case of fire loss.
The expected net earnings from the insurance after deducting the amount from the premium paid and total claim endorsed by the insurance company will be $710000 which can be shown as below
[tex]\rm Net\ earnings= claim\ received - premium\ of\ policy[/tex]
[tex]\rm Net\ earnings= 750000-40000[/tex]
We get,
[tex]\rm Net\ earnings= 710000[/tex]
If the individual were risk neutral he would like to take the insurance as the risk of fire in the example given above is 0.5 which is greater than zero and this ultimately implies that risk cannot be taken.In the case if the individual is expected utility maximizer he would take the insurance as it would not only give him the claims from losses due to fire but also help him secure his house against beta of fire.
Hence, the correct answers will be A- $710000; B- Yes.; C- Yes. and imply that taking insurance will be a wise decision by the individual.
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Two groups have different uses for a local field. A bird watching society enjoys studying the ground-nesting swallows that visit each summer. A mountain bike camp prefers to use the field to build jumps and hold other events and receives a benefit of $1,000 from using the field. When it does, the activities scare away the birds and the bird-watching society faces a wealth reduction of $700. What is the optimal use of the field during the summers
The optimal use of the field during summer season is to provide the field to the bird watching society.
The optimal use of the field during summer season is to avoid the mountain bike camp and allow the bird watching society to enjoys studying the ground nesting swallows that visit each summer because bike camp can be planned at any other location.
But the birds can't nested except this place so the field should allow the bird watching society to enjoys studying the ground nesting swallows on the field so we can conclude that the optimal use of the field during summer season is to provide the field to the bird watching society.
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Match the technology with the appropriate task
Answer:
1. e-mail = send a message and an attached document to ten staff members
2. GPS = get directions to a destination
3. fax machine = send a copy of documents to another office
4. Web browser = search the Web for information
5. word processor = type a business letter
Helen Bedru is the assistant controller of Cotton Cravat Co., a subsidiary of HG automotive, which manufactures tailpipes, mufflers, and catalytic converters at several plants throughout Ethiopia . Because of pressure for lowerselling prices, Cotton Cravat Co. has had disappointing financial performance in recent years. Indeed, Helen is aware of rumblings from corporate headquarters threatening to close the plant. One of Helen's responsibilities is to present the plant's financial plans for the coming year to the corporate officers and board of directors. In preparing for the presentation, Helen was intrigued to note that the focal point of the budget presentation was a profit-volume graph projecting an increase in profits and a reduction in the break-even point. Curious as to how the improvement would be accomplished, Helen ultimately spoke with Kiruvel Mesfin, the plant manager. Kiruvel indicated that a planned increase in productivity would reduce variable costs and increase the contribution margin ratio. When asked how the productivity increase would be accomplished, Kiruvel made a vague reference to increasing the speed of the assembly line. Helen commented that speeding up the assembly line could lead to labor problems because the speed of the line was set by union contract. Kiruvel responded that he was afraid that if the speedup were opened to negotiation, the union would make a big "stink" that could result in the plant being closed. He indicated that the speedup was the "only way to save the plant, our jobs, and the jobs of all plant employees." Besides, he did not believe employees would notice a 2 or 3 percent increase in speed. Kiruvel concluded the meeting observing, "You need to emphasize the results we will accomplish next year, not the details of how we will accomplish those results. Top management does not want to be bored with details. If we accomplish what we propose in the budget, we will be in for a big bonus."
Required: What advice do you have for Helen Bedru?Support your response with sufficient and sound reasoning
Helen Bedru can present the year's budget based on speeding up the assembly line if Kiruvel can further convince her of the possibility of achieving the plant's target. All stakeholders should be interested in keeping the plant running.
It is the responsibility of Helen to get all the required data for the budget. The budget should be based on verifiable facts and figures without padding. If she is convinced that the plant manager's strategy is implementable, she should work out the budget based on this new strategy.
It makes business sense to allow the plant to lower its variable costs by speeding up the assembly line and eliminating inefficiencies.
Thus, Helen Bedru needs to work with Kiruvel on the details of his strategy to achieve the budget projections.
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7. The Moroccan monetary authority is using a heavily-managed float to keep the dirham at U.S. $0.12 per dirham. Under current foreign exchange market conditions, nonofficial supply and demand would clear at U.S. $0.15 per dirham.
a. Using official intervention, what does the official Moroccan monetary authority have to do to keep the exchange rate at U.S. $0.12 per dirham?
b. If the monetary authority believes that this is a temporary disequilibrium, what does the authority expect to happen soon?
c. If private investors and speculators believe that this is a fundamental disequilibrium, what actions are they likely to take?
Based on the information given, the thing that should be done to keep the exchange rate at $0.12 per dirham is to sell foreign currencies to get more dirham.
It should be noted that since the non-official supply and demand of dirham is pegged at $0.15/ Dirham and the actual rate is $0.12/dirham, it implies that the Dirham is devaluated.
The authority will believe that due to devaluation, net export will rise and this will increase the income of the country.
Lastly, the private investors and speculators will not invest because the currency has lost its value compared to the dollars.
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A company's environmental sustainability strategy: ____________
a. is incompatible with the triple-bottom-line approach because it does not take into account people and profits.
b. always takes a back seat to strategies designed to improve a company's standing in the marketplace.
c. entails business practices that meet the needs of the future by rationing what is provided to present-day customers.
d. has a strong historical correlation with increases in the well-being of the environment and economic growth.
e. consists of a company's actions to protect the environment, provide for the longevity of natural resources, and maintain ecological support systems for future generations.
Answer:
A sustainability or corporate responsibility strategy is a prioritised set of actions. It provides an agreed framework to focus investment and drive performance, as well as engage internal and external stakeholders. The starting point for any strategy needs to be why the company is in business.
Explanation:
letter E is the answer
Rather than creating a new product, Chinese manufacturers have been notably successful at adopting a different strategy. They have been able to make and offer a competing product so rapidly that the majority of adopters have a choice when purchasing the product for the first time. This is referred to as a
The method that was adopted by the Chinese manufacturers who instead of creating a new product, adopted a different strategy is: Lean manufacturing initiative.
Lean manufacturing initiative is a form of manufacturing where the producer identifies non-value adding activities and initiates measures to systematically eliminate these.
The process is gradual. Most manufacturing organizations adopt this process.
This is the same with the Chinese industries who instead of immediately creating a new product, adopt the strategy of introducing competing products.
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