what is the value of a european call futures option where the futures price is 50, the strike price is 50, the risk-free rate is 5%, the volatility is 20% and the time to maturity is three months?
Answers
The value of a European call futures option where the futures price is 50, the strike price is 50, the risk-free rate is 5%, the volatility is 20% and the time to maturity is three months
The formula for the value of a European call futures option is:
\(C = F \times N(d1) - K \times e^{-r\times T} \times N(d2)\)
where:
- C is the value of the option
- F is the current futures price
- K is the strike price
- r is the risk-free rate
- T is the time to maturity (in years)
- N is the cumulative distribution function of the standard normal distribution
- d1 = [ln(F/K) + (r + 0.5×sigma²)×T] / [Sigma×sqrt(T)]
- d2 = d1 - sigma × sqrt(T)
Plugging in the given values, we get:
d1 = [ln(50/50) + (0.05 + 0.5 × 0.2²) × (3/12)] / [0.2 × sqrt(3/12)] = 0.495
d2 = 0.495 - 0.2 × sqrt(3/12) = 0.278
N(d1) = 0.6207
N(d2) = 0.6092
C = 50 × 0.6207 - 50 × \(e^{-0.05 \times (3/12)}\) × 0.6092 = 2.465
Therefore, the value of the European call futures option is 2.465.
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Related Questions
#1 You are driving down the highway when one of your tires suddenly blows out. You should
Pump your brakes rapidly, and steer your vehicle to control any skids.
Avoid using your brakes. Slow down gradually and concentrate on steering.
Press hard on your brake pedal and stop as quickly as you can.
Answers
which type of decision is calculating gross pay for hourly workers? unstructured ad hoc procedural semi-structured structured
Answers
Calculating gross pay for hourly workers is an example of a procedural decision. Procedural decisions are those that follow a set of well-established rules, procedures, or algorithms.
In this case, the calculation of gross pay for hourly workers follows a set formula that includes the hourly rate and the number of hours worked.
The decision maker does not need to use creativity or critical thinking skills to make this decision, but simply needs to follow the established procedures to arrive at the correct answer.
Procedural decisions are generally routine, repetitive, and have a low level of uncertainty. They are often automated or delegated to lower-level employees who can follow a set of predefined rules or procedures.
Procedural decisions can help increase efficiency and consistency in decision-making processes, as well as reducing errors or biases that may arise from unstructured or ad hoc decision-making.
In summary, calculating gross pay for hourly workers is a procedural decision that follows established rules and procedures, and can be automated or delegated to lower-level employees.
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If the exchange rate for buying Japanese Yen is 12 Yens per Dollar, how many
Yens do you need to buy 200 Dollars for? show working please
Answers
Answer:
2,400 Yens
Explanation:
exchange rate for buying Japanese Yen is 12 Yens per Dollar
1 dollar : 12 Yens
how many Yens do you need to buy 200 Dollars for?
Let
x = number of Yens needed
200 dollars : x Yens
Equate the ratios to find x
1 dollar : 12 Yens = 200 dollars : x Yens
1/12 = 200/x
Cross product
1 * x = 12 * 200
x = 2,400
x = number of Yens needed = 2,400 Yens
Answer:
2400 yen
Explanation:
smort
What two factors influence an economic school of thought?(1 point)
Answers
Answer:
Free-market, or laissez-faire, economics and Keynesian theory.
Explanation:
The economic school of thought can largely be influenced by prevailing societal values and the historical context in which the theory is developed.
There are many factors that might influence an economic school of thought, but the two key elements are often prevailing societal values and historical context. Prevailing societal values can drastically influence an economic philosophy.
Furthermore, the historical context in which an economic thought emerges is crucial. Economists develop their theories in response to the economic challenges and realities of their time. The Great Depression deeply influenced Keynesian economics, and the stagflation of the 1970s prompted a shift towards monetarism.
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Which one of the following statements is not true regarding inherent reliability of a product? O it is predicted O it is predicted based on the type of components used to make the product O it is determined by the design it is observed during use of the product
Answers
The statement "it is determined by the design" is not true regarding the inherent reliability of a product.
Inherent reliability refers to the inherent or inherent characteristic of a product that determines its reliability or probability of functioning without failure over a specified period of time. It is typically predicted or estimated based on factors such as the type of components used, manufacturing processes, and other design considerations.
The design of a product plays a significant role in influencing its reliability, but it does not solely determine its inherent reliability. Other factors such as the quality of components, manufacturing quality control, and environmental factors also contribute to the overall reliability of a product. Therefore, the statement that the inherent reliability is "determined by the design" is not accurate.
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In the long-run equilibrium of a market with free entry and exit, marginal firms are operating Group of answer choices at the point where average variable cost equals marginal cost. at the minimum point on their marginal cost curves. at their efficient scale. where accounting profit is zero.
Answers
In a market with free entry and exit, the long-run equilibrium occurs when marginal firms are operating at their efficient scale.
So, the correct answer is C.
This means they are producing at the point where their average variable cost equals their marginal cost. This is the level of output where firms can produce at the lowest possible cost per unit and earn a normal rate of return on investment. This point is also known as the minimum point on their marginal cost curve.
At this point, accounting profit is zero, which means that firms are earning just enough revenue to cover all of their costs including both explicit and implicit costs.
Firms that cannot produce at this efficient scale will eventually exit the market, while new firms will enter the market if they can produce at this scale.
Hence, the answer of the question is C.
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Novak Realty received a cheque for $24900 on July 1, which represents a 6-month advance payment of rent on a building it rents to a client. Deferred Revenue was credited for the full $24900. Financial statements will be prepared on July 31. Novak Realty should make the following adjusting entry on July 31: a. debit Deferred Revenue, $4150; credit Rent Revenue, $4150. b. debit Rent Revenue, $4150; credit Deferred Revenue, $4150. c. debit Deferred Revenue, $24900; credit Rent Revenue, $24900. d. debit Cash, $4150; credit Rent Revenue, $4150.
Answers
The adjusting entry that Novak Realty should make on July 31 is option b. debit Rent Revenue, $4150; credit Deferred Revenue, $4150.
When Novak Realty received the cheque for $24900 on July 1, it was recorded as a credit to Deferred Revenue. This is because the payment represents an advance payment of rent for six months. However, since financial statements are being prepared on July 31, an adjusting entry is required to recognize the portion of the advance payment that has been earned as revenue.
Option b is the correct choice because it appropriately reflects the revenue earned in the current period. By debiting Rent Revenue for $4150, Novak Realty recognizes the amount of rent revenue that corresponds to one month (1/6th of the total advance payment). Simultaneously, by crediting Deferred Revenue for the same amount, the portion of the advance payment that hasn't been earned yet is reduced.
This adjusting entry ensures that the financial statements reflect the revenue earned during the period and accurately state the remaining deferred revenue as a liability.
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hiro was using the database to prepare information for a presentation to potential investors which tool is he likely to use
A. Queries
B. Reports
C. Sorts
D. Forms
Answers
Answer:
It's Reports
Explanation:
Answer:
B. Reports Hope this helps!
campbell's tax return was audited because they failed to report on their tax return interest they earned. what irs audit selection method identified their tax return?
Answers
It is not specified which IRS audit selection method identified Campbell's tax return, but it could be one of several methods.
One common method is the Computer Audit Selection (CAS), which uses computer programs to identify tax returns with discrepancies or red flags that indicate underreporting of income.
Another method is the Correspondence Audit, which involves a letter sent to the taxpayer requesting additional information or clarification on certain items reported on the tax return.
It's also possible that Campbell's tax return was selected for audit through the Document Matching Program, which compares information on a tax return to the information submitted by third-party payers such as banks, employers, and other government agencies.
Regardless of the method used, the IRS audit of Campbell's tax return was likely triggered by their failure to report the interest they earned on their tax return.
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The horizontal portion of the Short-Run Aggregate Supply curve in which there is excessive unemployment. Keynes believed price level of wages stays the same ("sticky wages").Gambar: Keynesian SRAS curve
Answers
Keynesian SRAS curve represents the idea that wages are "sticky" in the short run, leading to a range where output can increase without leading to inflation, and government intervention can be used to stimulate demand and reduce unemployment.
As a result, in the Keynesian SRAS curve, there is a range where output can increase without leading to an increase in prices. This range is called the "slack" region, where there is excess capacity and unemployment. This region exists because firms are reluctant to lower wages, which would reduce costs and increase profits, but would also lead to lower demand and further decrease output.
Therefore, Keynes believed that government intervention, such as increased government spending, could help stimulate demand and increase output, which would lead to a reduction in unemployment. This theory became known as Keynesian economics, which emphasized the importance of government intervention in the economy during times of economic downturns.
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In a limited partnership, the limited partner has the legal authority to make decisions that affect the company without
having to consult the general partner.
True
False
Answers
A lawyer believes his client is guilty, but remains professional and represents his client. This is an example of which of the following?
Moral behavior
A.) moral behavior
B.) unlawful behavior
C.) ethical behavior
D.) mannerly behavior
Answers
Answer:
C
Explanation:
Would say Moral but it's ethical and couretious
Which of the following makes it possible for even a small investor to hold a diverse set of stocks and still keep the cost of purchasing additional stock holdings low? a a real world savings account b an equity (stock) mutual fund c a checking account at a local bank d a bond mutual fund
Answers
One of the best ways for even a small investor to hold a diverse set of stocks while still keeping the cost of purchasing additional stock holdings low is by investing in an equity (stock) mutual fund. An equity mutual fund is a professionally managed investment fund that pools money from multiple investors to purchase a diverse set of stocks.
By investing in a mutual fund, investors can gain exposure to a wide range of stocks, reducing their risk compared to investing in individual stocks.Furthermore, equity mutual funds are designed to provide investors with low-cost access to a diversified portfolio of stocks. By pooling funds from multiple investors, mutual funds can achieve economies of scale and keep costs low. Additionally, mutual funds offer investors the ability to purchase additional shares through dollar-cost averaging, which allows investors to purchase more shares when prices are low and fewer shares when prices are high.On the other hand, a real-world savings account, a checking account at a local bank, and a bond mutual fund do not provide the same level of diversification and low-cost access to a portfolio of stocks as an equity mutual fund. Savings and checking accounts typically offer low interest rates and minimal diversification, while bond mutual funds primarily invest in bonds rather than stocks. Therefore, for investors seeking to hold a diverse set of stocks while keeping costs low, an equity mutual fund is likely the best option.
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What kind of risks can exist in a business?
A business may have a/an _________ or a/an _________ risks.
1a fulfilled
1b internal
1c distinct
2a unfulfilled
2b merged
2c external
Answers
A business may have internal risk or external risks. Hence the above blank is filled. A business usually takes steps to measure the limitations in the business tormented.
What is an Internal Risk and External Risks?Internal Risk is one wherein a business, an organization, or an institute is based on the fact that people have been working within the business and suppose the business loses some important assets. It is a loss internally for the business and is also called Internal Risk. Internal Risks can be also like some individual from within the business secretly supplying Business leads to other competitors this is known as Internal Risk.
Whereas External Risks are those that are being carried over some time and are continuously in the process of directly competing with the external markets or business institutes. External Risks include direct loss of the company in the market. This is known as the External Risk.
Hence, the above statement is correct.
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The main reason that Starbucks was able to have the main share of coffeehouses in the world is just two decades is that they: used tangible resources to provide their product. capitalized on the economic climate at the most opportune time. were the only coffeehouse to offer premium coffee during extended hours. successfully applied their knowledge and skills to better serve customers.
Answers
Answer:
Were the only coffeehouse to offer premium coffee during extended hours.
Explanation:
Starbucks has a significant share in global markets, it has developed it in not so long time.
Reason behind it might be that - Its premium coffee beans & consequently coffee quality. This complimented with fair range of coffee varieties, relaxing & comfortable ambience, specially during extended hours - helped it attain the status.
Pernell company reported lifo reserves of $150,000 and $100,000 in year 2 and year 1, respectively. The company utilized the fifo assumption for internal purposes. Based on this information, we can conclude that pernell's pretax income for the year 2 fiscal year would have been.
Answers
First-in, first-out (FIFO) inventory value would have resulted in Pernell Company's cost of goods sold (COGS) in 2016 being $50,000 lower.
The inventory value for the firm in 2016 was $50,000 more than it would have been if it had utilized the FIFO approach since it used the last-in, first-out method. Since COGS tend to rise over time, scenarios like these are frequent.First-In, First-Out ("FIFO") bases its production costs on the presumption that the oldest items in an organization's inventory have been sold first. The LIFO ("Last-In, First-Out") technique substitutes such expenses for those incurred by assuming that the most recent goods in an organization's inventory have been sold first.The Last-In, First-Out (LIFO) method is predicated on the idea that the most recent or most recent unit to enter inventory is sold first. The oldest item of inventory is supposed to be sold first according to the First-In, First-Out (FIFO) technique.Thus this is the Pernell's pretax income for the year 2.
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do you like lauge arts it is supper fun in cool
Answers
Answer: It's really confusing. its just mid.
Explanation:
Mason Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. MASON TRANSPORT COMPANY West Division Income Statement for the Year 2015 Revenue $ 250,000 Salaries for drivers (175,000 ) Fuel expenses (25,000 ) Insurance (35,000 ) Division-level facility-sustaining costs (20,000 ) Companywide facility-sustaining costs (65,000 ) Net loss $ (70,000 ) Required a-1. By how much would companywide income increase or decrease if West Division is eliminated?
Answers
Answer:
a-1 $5,000 Increase
a-2 YES
b $15,000 Increase
Explanation:
a-1 Calculation for how much would companywide income increase or decrease if West Division is eliminated
Using this formula
Income =Net loss - Company-wide facility sustaining costs
Let plug in the formula
Income =$70,000-$65,000
Income =$5,000 Increase
Therefore how much would companywide income increase if West Division is eliminated is $5,000
a-2 YES West Division should be eliminated based on the above calculation reason been that the net income will increase by the amount of $5,000
b. Calculation to Determine the amount of the increase or decrease that would occur in companywide net income.
Net income =($ 270,000-$250,000)-$5,000
Net income=$20,000-$5,000
Net income=$15,000 Increase
Based on the above calculation the net income would increase by the amount of $15,000
Therefore the amount of the increase that would occur in companywide net income is $15,000
Q7. Start at one of the corners and move clockwise
around the square finishing in the centre to create a
nine-letter word.
E E
TIMER
os
A
HP
Scroll for details
CC
8:16 /16:05
DELL
Answers
Answer:
EARPHONES
Explanation:
We are to create a nine letter word. Start from any of the corners while moving in a clockwise direction.
There are four corners in the box:
Top left and bottom right corners have blanks, letter in the top right and bottom left corners are E and H respectively.
Hence, we would have 4 possible nine-letter word combination.
Let's state the possible nine-letter words
From the top left corner: _EEA_PHOS
From the bottom left corner: _PHO_EEAS
From the top right corner: EA_PHO_ES
From the bottom right corner: _PHO_EEAS
From the top right corner, we can form the word: EARPHONES
The missing letters are 'R' and 'N'
The purpose of the uniform commercial code is:
A. all of the above
B. to provide less formality and create uniformity in order to streamline commercial transactions
C. to simplify real estate transactions
D. to complicate business transactions so an attorney must be hired
Answers
The UCC is not a federal law, and it does not apply to non-commercial transactions. However, it has had an impact on other areas of law and has become a model for other countries.
The Uniform Commercial Code (UCC) is a set of legal codes that provides a consistent set of guidelines governing commercial transactions across all states in the United States. The UCC was created with the primary purpose of creating uniformity in the sale of goods and other commercial transactions. In this context, this article will provide an explanation of the purpose of the Uniform Commercial Code.The main purpose of the Uniform Commercial Code (UCC)The Uniform Commercial Code (UCC) was created with the primary goal of providing less formality and creating uniformity in order to streamline commercial transactions. The UCC streamlines the sale of goods, which is one of the most common types of commercial transactions.
The UCC has the potential to make commercial transactions more straightforward and less complicated. It provides a set of laws that are uniform across all states, which means that businesses can operate in different states and still use the same set of rules. The UCC simplifies commercial transactions, which is crucial to the business industry. Therefore, Option B is the correct answer. It should be noted that the UCC does not address real estate transactions, as the Uniform Real Estate Act does. Additionally, the Uniform Commercial Code does not complicate business transactions so that an attorney must be hired. It seeks to simplify business transactions and reduce the complexity of commercial transactions.
The Uniform Commercial Code (UCC) was established in 1952 by the National Conference of Commissioners on Uniform State Laws and the American Law Institute. Its main purpose is to simplify, standardize and streamline commercial transactions in the United States. Its jurisdiction encompasses all fifty states, and it seeks to make the law of sales and other commercial transactions uniform, irrespective of the location of the transaction. It is considered to be a comprehensive statute in the U.S. that covers many aspects of commercial law, such as the sale of goods, loans, banking, leases, security interests, letters of credit, and investment securities.
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hillary is single and earns $28,000 annually. she is not covered under her employer ?s retirement plan. which of the following describes her ability to establish a traditional ira and the tax treatment of her maximum contribution? a. hillary ?s contribution will be fully tax deductible. b. hillary ?s contribution will be partially tax deductible. c. hillary may make a contribution, but no portion of the contribution is tax deductible. d. hillary is not eligible to establish a traditional ira, so no contribution can be made.
Answers
Stocks, bonds, mutual funds, and other sorts of investments can be found in a Traditional IRA, a tax-advantaged retirement plan.The correct answer is hillary may make a contribution, but no portion of the contribution is tax deductible.
The possibility of investing with pre-taxed income is its main advantage. However, once withdrawals are made, traditional IRAs are taxed as ordinary income.An individual retirement account (or “Roth IRA”) is one that enables tax-free growth and tax-free withdrawals in retirement. When taxes would be greater at retirement than they are now, Roth IRAs are the best option.The contributions made to a Roth account are frequently made using after-tax funds that cannot be deducted; as a result, the contributions grow tax-free.Also worth mentioning is the possibility of tax-free rather than tax-deferred earnings in a Roth account.
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Which of the following is a disadvantage to Linux?
Olearning curve
O customizability
O cost
Ofreedom
Answers
Answer:
Learning curve
Explanation:
hat is a monopoly?
A monopoly is
A.
a firm in a competitive market with many other sellers.
B.
a firm in a market with a small number of independent firms that compete.
C.
a firm that is the only seller of a good or service that does not have a close substitute.
D.
a firm in a market with other firms that sell similar but not identical products.
E.
a firm that is the only buyer of a factor of production.
Answers
Answer:
I believe the answer that you're looking for is D
Explanation:
In Country A, the State controls ALL the factors of production. Country A could be described as a country that is operating within a:
A. free market economic system
B. laissez-faire economic system
C. mixed economic system
D. planned economic system
Answers
In a communist economic system, all factors of production are controlled by the government. The Planned economic system most similarly embodies that same economic system.
_______________ means that the organization fully imforms the participant of the conditions under which the test will be held, as well as how the results of the test will be used.
Answers
Informed consent is a crucial aspect of ethical research practices. It ensures that participants are fully aware of the study's purpose, procedures, and potential risks and benefits, as well as their rights as participants. By promoting transparency and respecting participants' autonomy, informed consent helps maintain trust between researchers and participants and contributes to the integrity of the research process.
Informed consent means that the organization fully informs the participant of the conditions under which the test will be held, as well as how the results of the test will be used. This process ensures that individuals participating in a study, experiment, or test are aware of their rights, the purpose of the study, and any potential risks or benefits associated with their involvement.
Informed consent is a fundamental ethical principle in research, and it is crucial for protecting the rights and well-being of participants. It involves providing participants with clear, accurate, and comprehensive information about the study, including its objectives, procedures, and any potential risks or benefits. Additionally, informed consent ensures that participants are aware of their right to withdraw from the study at any time without any negative consequences.
Obtaining informed consent typically involves presenting the participant with a written document that outlines the relevant information about the study. Participants are encouraged to ask questions and discuss any concerns they may have before deciding whether to participate. They must then voluntarily agree to take part in the study, usually by signing the informed consent document.
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What is the primary reason there is greater inconsistency in services than in tangible goods?.
Answers
Answer:the people who provide services vary in capability or daily performance.
Explanation:
Have you ever searched for an item on the internet only to have advertisements for similar products pop up on your homepage or social medial accounts for days or weeks? How do you feel when this happens? Do you find it frustrating or helpful? Explain and discuss.
Answers
Yes, it is common that when searching for an item on the internet, related ads appear on your social media for days or weeks, which is a digital marketing resource.
What is digital marketing?It corresponds to the set of techniques and strategies that companies implement so that their business has a presence in the online environment. There are several tools that are used in this medium, such as paid traffic, ads on social networks and commercial emails.
So, when an ad happens to appear repeatedly for you, it corresponds to an online traffic tool that helps the company attract customers based on previous searches, which can be useful when you are really interested in purchasing a similar product.
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Yes, it is typical for similar adverts to show up on the social media for days or weeks after conducting an internet search for a product. This is a tool used in digital marketing.
What is internet search?A request submitted to a search engine that produces both sponsored and organic results is known as an internet search, also known as a search query. Paid results are those that are marked as such and show at the top and bottom of the page. The results that show between the advertisements but are unmarked are considered organic results.
People must use your web browser to access a search engine, type one or more keywords, and then press the Enter key on your keyboard to start a search.
Thus, Yes, it is typical for similar adverts to show up on the social media.
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what was the result of the annual inventory audit of the inventory shrinkage and improper accounting at walmart? multiple choice inventory shrinkage doubled year-over-year inventory shrinkage increased by 90 percent inventory shrinkage decreased by 90 percent there was no change in inventory shrinkage
Answers
As an AI language model, I don't have access to current data or updates about the annual inventory audit of Walmart. However, I can give a general explanation about the terms related to the question.
Inventory shrinkage is the loss of inventory that can be caused by various factors such as theft, damage, mismanagement, or errors in accounting. Improper accounting can lead to inaccurate inventory records, making it difficult to track and manage inventory levels. Annual inventory audits are conducted to reconcile physical inventory counts with the recorded inventory levels in the company's books. This helps to identify any discrepancies or errors in the inventory accounting process. If inventory shrinkage doubled year-over-year, it would mean that there was a significant increase in inventory loss compared to the previous year. An increase of 90 percent in inventory shrinkage would also indicate a substantial rise in inventory loss. Conversely, a decrease of 90 percent in inventory shrinkage would imply a significant improvement in the company's inventory management practices. However, without specific information about the annual inventory audit at Walmart, it is impossible to determine the exact result of the inventory shrinkage and improper accounting audit.
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Which of the following techniques helps a company learn more about its target market?
1. Market research
2. Publicity
3. Personal selling
4. Market segmentation
Answers
Answer:
Market research
Explanation:
Should I start my final exam? im kinda scared ill get a bad grade lol. anyways, I hope everyone is doing great.
Answers
Answer:
do it lol putting more words because its requireddddd
Answer:Yes you should and dont be scared just try your hardest. Also i am doing great what about you ?
Explanation: