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Ainat [17]
2 years ago
13

Before expiration, the time value of a call option is equal to Group of answer choices zero. the actual call price minus the int

rinsic value of the call. the intrinsic value of the call. the actual call price plus the intrinsic value of the call.
Business
1 answer:
masya89 [10]2 years ago
6 0

Answer: the actual call price minus the intrinsic value of the call.

Explanation:

The actual price of a call is calculated as the sum of the intrinsic value of the call and the time value of the call option in the manner:

Price of call = Intrinsic value of call + Time value of call

The Time value of the call is therefore:

Change subject of below formula:

Price of call = Intrinsic value of call + Time value of call

Time value of call = Price of call - Intrinsic value of call

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Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the follo
a_sh-v [17]

Answer:

a. It will increase.

b. It will decrease

c. It will decrease

d. it will increase.

Explanation:

If the price of an input needed for production of good X decreases, the cost of production of good X reduces. It becomes cheaper to produce good X and and as a result the supply of good X would increase.

An increase in tax increases the cost of production and makes production of good X more expensive. As a result, the supply of good X would fall.

technological change that reduces the cost of producing additional units of good X, would make the production of good X less expensive. As a result, the supply of good X would increase

3 0
2 years ago
If the USA could produce 1 ton of potatoes or 0.5 tons of wheat per worker per year, while Ireland could produce 3 tons of potat
Anuta_ua [19.1K]

Answer:

A. The USA specializes in potatoes because of its comparative advantage in producing potatoes.

Explanation:

US         1 ton of potatoes or 0.5 tons of wheat = 2

Ireland  3 tons of potatoes or 2 tons of wheat = 1,5

8 0
2 years ago
Using these data from the comparative balance sheet of Sunta Fe Spice Company, perform horizontal analysis. (Round percentages t
frozen [14]

Answer:

75000,25%;

18000, 30%.

420000, 15%.

Explanation:

From the question above we are given the following parameters Accounts receivable for year 2017 = $ 375,000,

Inventory for the year 2017 = 780,000 and the Total assets for the year 2017 = 3,220,000.

Accounts receivable for year 2016 = $ 300,000, inventory for the year 2016 = 600,000 and the Total assets for the year 2016 = 2,800,000.

Therefore, we have the following simple arithmetic(which is subtraction between the variables in the two years) to determine the solution to the question:

(375,000 - 300,000) = 75,000 = 25%(increase).

(780,000 - 600,000) = 180,000 = 30%(Increase).

(3,220,000 - 2,800,00) = 420,000 = 15%(increase).

8 0
2 years ago
Read 2 more answers
Marco knows that he needs to score an "A" on his next test in order to keep his scholarship. To that end, he studies two hours e
kondaur [170]

Answer:

The correct word for the blank space is: content.

Explanation:

Content goals are those important or that have a high value. These objectives are typically involved in the personal or professional development of individuals. Content goals imply a higher involvement and usually are objectives that cannot be set aside compared to other goals.

6 0
1 year ago
A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 compu
kherson [118]

Answer:

$1,840

Explanation:

In order to calculate the Marginal cost of producing the computers in 2nd hour of work, we need to add the marginal cost of computer and marginal cost of wage in the 2nd hour of work.

MC = MC(computers) + MC(wage)

MC = $1,800(w) + $40

MC = $1,840

Working

MC (computers ) = 3 x 600$ = $1,800

                hour        computers assembled

                    1st                        4

                    2nd                      7

If pam works 2 hours she can assemble 7 computers but she already assembled 4 computers in 1st hour.

So the 2nd-hour computers will be 3 ( 7 - 4) computers.

4 0
2 years ago
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