A stock is currently priced at $52.50 a share. One year from now, the stock price is expected to be either $54 or $60 a share. The risk-free rate of return is 4 percent. What is the value of a 1-year call option with an exercise price of $55

Answers

Answer 1

Answer:

Answer:

Value of 1-Year option=$0.48

Explanation:

First, we have to calculate the present value of share being priced at $54 after one year,which shall be calculated as follow:

Present value of share=54(1+4%)^-1

=$51.92

Now we have to calculate the number of options which will be required to exercise for one share:

Number of options=(60-54)/(5-0)=1.2

Finally, we have to calculate the value of 1-year call options which shall be calculated as follow:

Current price of share=Number of options required for one share*Value of 1-year option+Present value of share

52.50=1.2*value of 1-Year option+51.92

1.2*value of 1-Year option=0.58

Value of 1-Year option=$0.48

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The federal act which provided over $7 billion to the EPA to protect and promote "green" jobs and a healthier environment is the - National Environmental Policy Act. - Resource Recovery Act.- Resource Conservation and Recovery Act.- American Recovery and Reinvestment Act. - Clean Air Act.

Answers

Resource Conservation and Recovery Act?

Final answer:

The American Recovery and Reinvestment Act is the federal act that provided over $7 billion to the EPA to create and sustain 'green' jobs and foster a healthier environment. It was signed into law in 2009 and contributed significantly to environmentally-focused efforts.

Explanation:

The federal act which provided over $7 billion to the EPA to promote 'green' jobs and a healthier environment is the American Recovery and Reinvestment Act. This Act was signed into law by President Obama in 2009, with the intent to create new jobs and save existing ones, spur economic activity and long-term growth, and foster unprecedented levels of accountability and transparency in government spending. A significant portion of the funds was allocated to environmentally-focused efforts, hence its contribution to 'green' jobs and the promotion of a healthier environment.

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The trial balance of a company included the following account balances: Cash, $25,000; Short-Term Investments, $10,000; Accounts Receivable, $40,000; Inventory, $90,000; and Prepaid Insurance, $12,000. Its quick assets total:A. $35,000
B. $125,000
C. $75,000
D. $165,000
E. $50,000

Answers

Answer:

C. $75,000

Explanation:

All the current assets which can be quickly converted into cash are the quick assets. Inventory and Prepaid Insurance are not the p[art of this because these take much longer time to convert into cash than other current assets. Receivable has more liquidity than inventory because it takes less time to recover.

Cash $25,000

Short-Term Investments $10,000

Accounts Receivable $40,000

Total Quick Assets $75,000

Answer:

Its quick assets total is $75,000. The right answer is C.

Explanation:

In order to calculate the company's quick assets total we need to check according to the data, which of the account balances of the company are quick assets.

Hence, Quick assets are the following:

Cash $ 25,000

Short Term Investments $10,000.

Accounts Receivable $40,000.

Therefore, Total Quick Assets=$ 25,000+ $10,000+ $40,000= $75,000

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b. False

Answers

True. Many automobile companies offer adapted cars for disabled people, for example offering adjusted hand controls, altering access to the vehicle so it is wheelchair accessible or adjusting the space in the back of the vehicle so a wheelchair or mobility scooter can fit.

It is true that many automobile companies have custom options available for disabled people.

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Many automobile companies offer custom options and modifications for disabled people to make their vehicles more accessible and accommodating to their specific needs. These modifications can include wheelchair ramps, hand controls for driving, swivel seats, and other adaptive features.

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A government imposes _____ to increase competition in the marketplace.a. antitrust laws b .patents c. tariffs

Answers

I believe the correct answer from the choices listed above is option C. A government imposes tarriffs to increase competition in the marketplace. It is a tax imposed on imported goods and services. It is used to restrict trade. Hope this answers the question.

Answer: (A) Antitrust law

Explanation:

The antitrust law is the law that government imposed for increasing the competition in marketplace.

The antitrust law is basically promote the and also protect the level of competition in the market. It always ensure illegal business practices and the also proscribe the unlawful merges.

If the prices get lower in the geographical areas, it is one of the best example of explaining the antitrust law.

Therefore, Option (A) is correct.

Which of the following activities is the least expensive?a. Golf.
b. Swimming.
c. Sailing.
d. Photography.

Answers

The answer is swimming because You don''t have too have your own pool. You can go to a park pool.

Final answer:

Swimming is generally the least expensive activity among golf, sailing, and photography due to the lesser requirements of expensive equipment or membership fees.

Explanation:

The least expensive among the listed activities would be swimming. This conclusion is based on the general understanding that golf and sailing require specialized, often expensive equipment or membership fees, whilst photography requires significant investment in cameras, lenses, and potential editing software. On the other hand, swimming is generally a low-cost activity as it usually requires only a swimsuit and access to a pool, lake, or ocean, which is often freely available or comes with a small charge.

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The following example illustrates which of the following factors that can cause a shift in supply? If the price of lumber decreases, the Crystal Match Company would increase its supply of matches, because it would be making more profit off of each box.a. changes in technology
b. government involvement
c. changes in the prices of inputs
d. changes in the prices of other goods

Answers

The answer is C. Changes in prices of inputs

Lumber is the raw material in producing matches ( the inputs). If the price of lumber is currently dropped, it is rational for the company to increase the supply of matches to gain more profit.

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