Given: S = $100, u = 1.3, d=0.8, K = $95, r = 8% (continuously compounded), 8=0, T= 0.5 year, and n = 1.
a. Verify that the price of a European call is $16.196
b. Suppose you observe a call price of $17. What is the arbitrage?
c. Suppose you observe a call price of $15.50. What is the arbitrage?

Answers

Answer 1

a. To verify that the price of a European call is $16.196, we can use the following formula:

C = e^(-rT)[p*u*S - p*d*S]

Where C is the call price, p is the risk-neutral probability, and S is the stock price.

First, we need to calculate p, which is given by:

p = (e^(rT) - d) / (u - d)
p = (e^(0.08*0.5) - 0.8) / (1.3 - 0.8)
p = 0.4614

Next, we can substitute the values into the formula:

C = e^(-0.08*0.5)[0.4614*1.3*$100 - 0.4614*0.8*$100]
C = $16.196

b. If we observe a call price of $17, there is an arbitrage opportunity. To calculate the arbitrage, we can use the formula:

Arbitrage = Call price - C, where C is the theoretical call price calculated in part a.

Arbitrage = $17 - $16.196
Arbitrage = $0.804

c. If we observe a call price of $15.50, there is also an arbitrage opportunity. To calculate the arbitrage, we can use the same formula as in part b:

Arbitrage = Call price - C
Arbitrage = $15.50 - $16.196
Arbitrage = -$0.696

This means that we can make a riskless profit of $0.696 by buying the call option at $15.50 and selling it at the theoretical price of $16.196.

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Factors that create issues for entrepreneurs by hindering international business are known as trade barriers.

What are trade barrier?

Trade limitations are imposed by the government on global trade. The theory of comparative advantage claims that trade restrictions harm the global economy and reduce overall economic efficiency.

Natural barriers, such distance and language barriers, tariff barriers, or levies on imported goods, and nontariff barriers are the three main obstacles to international trade. Exchange restrictions, buy-national policies, import limits, and embargoes are examples of nontariff trade barriers.

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A exchange is used to swap goods and services for other goods and services through the use of trade credits.

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A barter exchange is used to swap goods and services for other goods and services through the use of trade credits.

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When manufacturing overhead costs are assigned to production in a process cost system, they are debited to.

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When manufacturing overhead costs are assigned to production in a process cost system, they are debited to a work in process account.

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The monetary policy tool whereby the Federal Reserve buys and sells government bonds is called: the discount rate. open-market operations. reserve requirements. moral suasion.

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Complete question:

The monetary policy tool whereby the Federal Reserve buys and sells government bonds is called:

(A) the discount rate.

(B) open-market operations.

(C) reserve requirements.

(D) moral suasion.

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Answer:

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Explanation:

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Answers

Answer: True

Explanation:

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The first step of the accounting cycle is to _____. post journal entries to the ledger prepare an unadjusted trial balance analyze the adjustment entries analyze and record the transactions in the journal

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Analyze and record the transactions in the journal.

The first step of the accounting cycle is to analyze and record the transactions in the journal.

What are all the steps involved in accounting cycle?

There are 10 steps involved in accounting cycle, which are the following:

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(A) the coach's leadership style to guide employees to achieve the best possible results.

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This question is incomplete. Please read the question below.

Rhea is a manager at an art supply store. She closely supervises her employees, but also explains decisions and asks for feedback. Which leadership style does Rhea use?

A. Coach

B. Supporter

C. Delegator

D. Director

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The portion of the payments during the first 31 months goes toward interest is 82.95%.

What is a mortgage?

A mortgage payment usually consists of four parts: principle, interest, taxes, and insurance. The Principal part is the sum that is deducted from your outstanding loan balance. The expense of borrowing money is expressed as interest. Your interest rate and loan balance determine the amount of interest you pay.

Mortgage Varieties

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Jumbo loans are ideal for individuals with great credit who want to purchase a large house.

Government-insured loan - Ideal for consumers with low credit ratings and little money for a down payment.

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what are the differentiates between needs and wants​

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Answer:NEEDS: Anything without which you'll dieWANTS: Anything without which you'll be still livingHope it helps

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The answer is trading security.

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Companies will only invest if they think there is a good chance they will be compensated for the risk they are taking because they do not intend to hold such securities for an extended period of time.

If a corporation finds an undervalued security and wishes to take advantage of the chance, it may decide to speculate on various debt or equity assets.

Debt securities and equity securities are both included in the category of securities known as trading securities.

Hence, in the given case where Strickland Corporation has invested in debt securities. Strickland intends to actively buy and sell this investment for profit. This investment is classified as trading security.

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How much money will you have in 6 years if you invest $16,000 at a 3.1% annual rate of interest compounded quarterly

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The final balance is $19,256.95.

The total compound interest is $3,256.95.

What is compound interest?

Compound interest is the adding of interest to the principal sum of a loan or deposit, or interest on interest plus interest. It is the outcome of reinvesting interest, or adding it to the lent capital, rather than paying it out or requesting payment from the borrower, so that interest is received on the principal sum plus previously accumulated interest in the next month. In finance and economics, compound interest is the norm.

Compound interest differs from simple interest in that previously accrued interest is not added to the main amount of the current period, resulting in no compounding. The simple annual interest rate is calculated by multiplying the interest amount per period by the number of periods per year.

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A flier outside a community center states that an organization is accepting charitable donations of clothing for families whose homes are damaged by weather. Which action is likely one role of this organization

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The action that is likely one role of this charity organization is providing jackets during snowstorms.

Charity organizations can be regarded as those organizations that are devoted to providing help to humanity without expecting any reward from the government.

Therefore, in the case above where people donated clothing for families whose homes are damaged by weather, it is the function of that organization to make the clothes to get to the victims.

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Procter & gamble has fickle customers and needs to rapidly innovate new products. it benefits from implementing:______.
a) a functional organization, where specialists can improve their skills.
b) a matrix organization to manage a wide variety of demographic-specific products or services.
c) a geographic organization for lower transportation and distribution costs.

Answers

Option (B) is a matrix organization to manage a wide variety of demographic-specific products or services.

Procter & Gamble Co (P & G) is a consumer goods manufacturer and distributor. The company's products include conditioners, shampoos, male and female blades, and razors, toothbrushes, toothpaste, dishwashing liquids, cleaning agents, surface cleaners, and air purifiers.

Procter & Gamble is not owned by a hedge fund. The company's largest shareholder is The Vanguard Group, Inc., which holds an 8.9% stake. BlackRock, Inc. holds 6.6% and 4.4% of the outstanding shares. And State Street Global Advisors

Procter & Gamble has been controversial in recent years. The osteoporosis and bone loss drug Actonel, which was co-marketed with Sanofi-Aventis, caused side effects in many patients.

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Duress occurs when a. a party gives notice of refusal to be bound by an agreement. b. an improper threat is made to force another party to enter into a contract. c. both parties contract based on the same factual error. d. the enforcement of a contract results in unconscionability.

Answers

The correct option is ( b)  an improper threat is made to force another party to enter into a contract.

In law, a situation in which someone acts under duress or coercion is one in which the person is subjected to violence, threats, or other forms of pressure.

Using force, coercion, threats, or psychological pressure, among other things, to persuade someone to act against their will is known as duress. If someone is behaving under duress, they are not doing voluntarily, and as such, they may be treated as such in legal proceedings.

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When a country imposes tariffs, it is likely to cause


increased quantities of imports.

higher prices for the import-competing goods both domestically and abroad.

lower prices for domestic production.

less expensive exports.

Answers

Answer:

lower prices for domestic production

Explanation:

tariffs means

more tax on imports so

imports would be more expensive

A. increased quantities of imports?

if imports are more expensive because of tariffs and

if people buy less

then there would NOT be

increased quantities of imports

because they are more expensive

B. higher prices for the import-competing goods both domestically and abroad?

import-competing (domestic) goods would be cheaper

C. lower prices for domestic production?

yes domestic production would be cheaper

D. less expensive exports?

only if other countries don't put tariffs on them themselves

When a country imposes tariffs, it is likely to cause: Higher prices for the import-competing goods. Tariffs tend to reduce the volume of imports by: Making them more expensive to domestic consumers.

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Acme Manufacturing Company prepared a fixed budget based on the expected sales of 160,000 units. That fixed budget included variable costs totaling $800,000 and fixed costs totaling $240,000. If the company instead uses flexible budgeting and actually sells 200,000 units during the year, what are the amounts that will be included in its flexible budget performance report for total variable costs and total fixed costs?

Answers

If Acme Manufacturing Company uses flexible budgeting and actually sells 200,000 units during the period, these amounts will be included in its flexible budget performance report:

Variable costs = $1,000,000

Fixed costs = $240,000

What is a flexible budget?

A flexible budget adjusts the budget according to the activity or volume levels of the company.

For instance, if the total variable costs is $800,000 with expected sales of 160,000 but the actual sales equal 200,000, the flexible budget will be adjusted to $1,000,000 ($800,000/160,000 x 200,000).

Data and Calculations:

Expected sales = 160,000 units

Fixed Budget Figures:

Total variable costs = $800,000

Total fixed costs = $240,000

Flexible Budget Figures:

Total variable costs = $1,000,000 ($800,000/160,000 x 200,000)

Total fixed costs = $240,000

Thus, the flexible budget will still maintain the total fixed costs since they do not vary according to the volume level, within the relevant range.

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You are working with an experienced Customer Service Representative to board a busy flight on a tight timeline. You notice that your team member is not following the safety policies and procedures associated with the jet bridge operation. You want to say something, but your team member has worked here much longer than you. How would you handle this situation

Answers

If your team member has worked here much longer than you then the situation can be handled by calling your team attention to the dangers attached to not following the safety rules in a calm and friendly way.

Who is customer service representative?

Customer service Representative relates directly with customers, they ensure they are comfortable when they come to them by providing necessary service the customer will need and also ensure good sales.

The rep should handle the situation by pointing their attention to the danger attached to not following the safety rules in a very friendly manner and could also have a superior informed that could help guide them.

Therefore,

If your team member has worked here much longer than you then the situation can be handled by calling your team attention to the dangers attached to not following the safety rules in a calm and friendly way.

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Given a best-case scenario, which of the following statements correctly describes the Federal Reserve's behavior

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The statement correctly describes the federal reserve's behaviour The Federal Reserve would strive to "offset a" negative shock to aggregate demand with an increase in the money supply.

What is a federal reserve?

This is the central bank of the united states created by congress to provide the nation with a safer, more flexible and more stable monetary and financial system.

As the most powerful economic institution in the united states, its power and responsibilities includes setting interest rates, managing the money supply, and regulating financial markets.

Hence, the main function of the federal reserve is to set U.S. monetary policy to promote maximum employment and stable prices in the U.S. economy.

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Maximizing local profit or minimizing cost in a supply chain is best described as?

Answers

When a company engages in maximizing local profit or minimizing cost in a supply chain, this can best be described as local optimization.

What is local optimization?

This refers to a when a company acts to gain competitive advantage in a local supply chain.

To do this, the company would need to maximize the profits it gets locally while minimizing the costs of running a supply chain.

When this happens, the company can be said to have achieved local optimization because they have found the optimal solution to getting more profit at less cost in the local area that they were focusing on.

In conclusion, this is local optimization.

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The Fannie Mae 1004 form is intended to be used to report an appraisal on modular or panelized homes.

Answers

This is true. The Fannie Mae 1004 form is intended to be used to report an appraisal on modular or panelized homes.

What is the Fannie Mae 1004 form?

This is the term that is used to refer to the form that is used to report the appraisals of one unit properties that are made up of with units that act as accessories in the United States of America,

The report does not give the appraisal of the houses that have been manufactured or built in the forms of what is a cooperative.

The appraisal is usually done for a detached single unit home in the country.

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What is the minimum cost of crashing the following project that roger solano manages at slippery rock university by 4​ days?.

Answers

Answer:

The minimum cost of crashing the project that Roger Solano manages at Slippery Rock University by 4 days is $1100

Explanation:

The critical path of the project = Longest path of the project = CE

= 4 + 8

= 12 days

Other Paths = AD

= 6 + 5

= 11 days

In order to reduce project time by 4 days , we need to crash

C by 1 day,

E by 3 days

A by 1 day

D by 2 days

so as to have the total project duration be 8 days

Cost of crashing = Crashing cost of A, C, D, and E

= (1000 - 900) + (600 - 500) + (1200 - 900) + (1600-1000)

= 100 + 100 + 300 + 600

= $1100

To determine the minimum cost of crashing a project, we would need more information about the specific project's details, such as its critical path, activities, durations, and crash costs.

When it comes to project management, "crashing" is the practice of shortening project timelines by allocating more resources to critical tasks. This speeds up project completion but usually results in higher costs due to the additional resources required.

Key path operations of the project, their duration, additional resources required and their associated costs are some of the variables that affect the minimum cost of crashing the project for four days. Without this precise information it is impossible to give an accurate estimate of the minimum cost to eliminate the project led by Roger Solano at Slippery Rock University.

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On April 1, Garcia Publishing Company received $30,780 from Otisco, Incorporated for 36-month subscriptions to several different magazines. The company credited Unearned Revenue for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year

Answers

Based on the total amount that Garcia Publishing received from Otisco, the adjusting entry that Garcia Publishing will record at year end is debit Unearned fees $7,695 ; credit fees earned $7,695

What amount would be recorded at year end?

First, find the monthly subscription:

= 30,780 / 36

= $855

From the month of April till December is 9 months which means the amount to be recognized is:
= 855 x 9

= $7,695

The Unearned fees will then be debited by $7,695 to show that some of the subscription for the year is being recognized.

The fees earned account will be credited like it normally would when revenue comes in from subscriptions.

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May the landscaper assert and maintain a counterclaim against the homeowner for breach of contract, seeking the $30,000 due under the landscape contract?

Answers

No the landscaper cannot make the claim under the landscaping contract as the court does not have subject matter jurisdiction. A landscaping contract, also known as a landscaping services contract, is a legally binding agreement between a landscaping contractor and a client.

The agreement specifies payment terms, contact information for each party, types of services provided, and how to resolve legal disputes. It is common practice to require clients to sign a landscaping contract. When both parties sign a landscaping contract, it is legally binding and represents a shared understanding. A landscaping contract must contain several essential elements in order to be enforceable and get claim.


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rank the following monomers from most to least able to undergo anionic polymerization Let U be a square matrix with orthonormal columns. Explain why U is invertible. What is the inverse? (b) Let U, V be square matrices with orthonormal columns. Explain why the product UV also has orthonormal columns. the great depression aggravated the tense situation between muslims and hindus in india, in part because when your work group disagrees, the disagreements usually concern how the group's work should be accomplished. the type of conflict experienced by your group is known as a ________ conflict. Use analytic methods to find those values of x for which the given function is increasing and those values of x for which it is decreasing. Show your work.f(x) = x^4 - 8a. Increasing on (-2, 2), decreasing on (-8, -2) and (2, 8)b. Decreasing on (-8, 0) and increasing on (0, + 8)c. Increasing on (-8, -2) and (0, 2), decreasing on (-2 , 0) and (2, 8)d. Increasing on (-8, -2) and (2, 8), decreasing on (-2, 2) The length of the smallest side (or leg) of a right triangle is 6. The lengths of the other two sides are consecutive even integers. Use the Pythagorean theorem to solve for the smaller of the two missing sides (the second leg). rganized crime in the united states is a local commodity, controlled by five mafia families in new york, pittsburgh, miami, chicago, and seattle.T/F WILL MARK BRAINLIEST if this monopolist is regulated to charge a zero-profit price, what is the dead weight loss? a. $1250 b. zero c. $1500 d. $750 Before the epic, The Iliad even begins, Gareth Hinds, the illustrator, introducesus to the major characters. Why do you think he drew the Greeks with redaccents and the Trojans with blue accents? better known for his military mind, which leader is credited with creating the first international postal system? Clincas del Azcar is addressing diabetes, a major health issue in Mexico, by using a generic strategy that is known asa. focused differentiation: providing only specialized diabetes treatments at selected facilities.b. best-cost leadership: making multiple referrals to other care providers to eliminate the need and expense for professionals and equipment to be brought under the roof of one facility.c. broad low cost: using aggressive cost reduction and price cutting to attract patients.d. focused low cost: using proprietary technology and a streamlined care system.e. broad differentiation: charging a price premium for upscale high-quality care for up to 80 percent of the population. Nurses are designated as a separate bargaining unit by the National Labor Relations Board for the purposes of collective bargaining. bargaining arbitrator Use your knowledge of union organiz Ying question. bargaining unit Management at a telecommunication mediation board put together a communication letting managers know which actions they should and shouldn't take during an upcoming u in. Which of the following actions would you include in your campaign? collective unit Do not threaten or terminate employees for their union support or beliefs. Do promise employees improvements in working conditions if they do not vote for the union. Do question employees about the content of union meetings. Do not inform employees about the benefits of remaining union free. Use your knowledge of union organizing campaign concepts to answer the following question. Due to representation, the union represents all bargaining unit employees. which of the following disorders is most likely to result in heberdens nodes? The figure shows right triangles drawn inside of a rectangle. Select from the drop-down menus to correctly complete each statement 21. company abc has sales of $418,000, total equity of $224,400, a tax rate of 23 percent, a debt-equity ratio of 0.37, and a profit margin of 5.1 percent. what is the return on assets? (5 points) perhaps hubble's greatest achievement was when he determined that the light we receive from galaxies is... Angelica is considering savings options. Bank 1, she can invest $500 compound interest for an annual rate of 2. 3%. At bank 2, she can invest $500 at a simple interest rate of 2%. How much more money would Angelica earn in 5 years with Bank 1 thank Bank 2. (Hint: when finding compound interest you will have to take "A-total amount" then subtract your "P-principle" to get interest) A $510. 21B $60. 21C $50. 00D $10. 21 yamagishi categorized japanese participants as high and low trusters in one study (1986), and later (1988) replicated this study in the united states and compared the results. he found EVALUATE the following LINE INTEGRAL:Cx2y2z dz ,where the curve C is:C : |z| = 2 .