The price of a stock call option is __________ correlated with the stock price and __________ correlated with the strike price.
1 answer:
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Answer:
(a) Short-term debt can increase by a maximum of $466,666.67 without pushing its current ratio below 1.9
(b) The firm's quick ratio after Nelson has raised the maximum amount of short-term funds is 1.34
Explanation:
Current assets = $1,750,000
Current liabilities = $700,000
Initial inventory level = $490,000
Current ratio = Current assets ÷ Current liabilities
= $1,750,000 ÷ $700,000 = 2.5
1.9 = (Current assets + ) ÷ (Current liabilities +
)
1.9 = ($1,750,000 + ) ÷ ($700,000 +
)
1.9 × ($700,000 + ) = ($1,750,000 +
)
$1,330,000 + = $1,750,000 +
= $1,750,000 - $1,330,000
= $466,666.67
Short-term debt can increase by a maximum of $466,666.67 without pushing its current ratio below 1.9
Quick ratio = (Current assets - Inventories) ÷ Current liabilities
= $937,500 ÷ $700,000
= 1.34
Answer:
represent the lower limit
represent the Upper limit
So then the limits for this case are (405, 435)
Explanation:
Let's define X as our random variable that represent the "number of calories for a chicken breast", and we have the following data:
The select a sample of 25 chickens , n = 25. And we want to find the limits for a confidence interval within 3 deviations from the mean with z =3.
We assume that the distribution for X is normal. So then the distribution for the sample mean is also normal.
And for this case the confidence interval would be given by:
So the limits are defined as:
represent the lower limit
represent the Upper limit
Since we have all the values given we cn replace like this:
represent the lower limit
represent the Upper limit
So then the limits for this case are (405, 435)