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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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Why does a more participative management style ("tipping the pyramid over") lead to greater responsiveness to customers’ needs,
suter [353]

Inclusive and participatory management practices are the most effective in today's society. The indices show that companies that adopt this style of management achieve continuous improvements throughout the organizational process. Organizational culture focused on employee well-being ensures a positive culture and this influences them to do their job more effectively. It also increases security, pride in being part of that company, and values.

4 0
2 years ago
Read 2 more answers
Malcolm purchased an old convenience store, and after renovations will open a small vegan grocery. He paid $517,000, of which $4
MrRa [10]

Answer:

amount $524,000 represent the Depreciable basis

Explanation:

given data

paid =  $517,000

building = $417,000

renovations cost = $107,000

amount = $524,000

to find out

What does the amount $524,000 represent

solution

here  amount $524,000 represent the Depreciable basis

because Depreciable basis is the acquisition cost of investment + renovations  .........................1

Depreciable basis amount = $417,000 + $107,000 = $524,000

so here is the investment is depreciable basis

so that we can say that amount $524,000 represent the Depreciable basis

3 0
1 year ago
Durable goods such as tvs and refrigerators are _____.
ladessa [460]
Could be a lot of things like;
Replaceable
Necessities 
Long Lasting


4 0
2 years ago
John purchased 12372 kWh of electricity and 3568 CCF of natural gas in a year. The cost of electricity is 7.1 cents/kWh and that
stealth61 [152]

Answer:

A is correct option 15.6$

Explanation:

According to question,

Electricity purchased =12372 kwh

Cost of electricity = 7.1 cent/kwh =0.071dollar/kwh

Natural gas purchased = 3568 CCF

Cost of natural gas = 1.5 dollar/CCF

BTUs purchased per dollar

=((12372*3412)+(3568*100000))/((12372*0.071)+(3568*1.5))

=64042.8376 BTUs/ dollar

Now, cost of 1MMBTUs =1000000/64042.8376

= 15.6 dollar

5 0
1 year ago
In considering the arguments for the relevance of dividends, which of the following statements is/are correct? a. Shareholders w
stealth61 [152]

Answer:

The correct answer is letter "A": Shareholders who are risk averse may prefer some dividends over the promise of future capital gains.

Explanation:

A dividend is a cash distribution by a company to its shareholders out of the profits of a period. Capital Gain refers to the increase in the value of a capital asset or an investment upon sale. From the two of them, dividends are safer investments since they do not rely exclusively on the sales of an asset.  

Thus, a conservative investor is likely to choose dividends over the promise of capital gains.

5 0
1 year ago
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