Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer: a.Political-legal b. General environment
Explanation:
Political-legal dimension of a company's legal environment include legal restrictions on a business as well as public uproar for that restriction.
The statement that holds true for the American Option is (A) Put-call parity provides an upper and lower bound for the difference between call and put prices
Explanation:
According to the Put-call parity concept when we hold the short European put and long European call of similar class the return delivered is same as holding one forward contract of the same underlying asset, that has the same expiration, forward price and which is equal to the strike price of the option
In financial management put–call parity concept is used to define the relationship that exist between the price of a European call option and European put option, and both of them have identical strike price and expiry
The formula used for calculating put call parity is
c + k = f +p
where (c) call price plus the (k) strike price of both options is equal to the futures price(f) plus the put price(p)
Answer:
In normal conditions, 1.44% of the production will be spoiled.
Explanation:
Giving the following information:
A company produces 13,900 units of which 200 are spoiled.
<u>The normal spoilage occurs as a part of the regular operations of an efficient process. </u>
Abnormal spoilage is the result of unusual operating problems (the 70 units).
Normal spoilage= (200/13,900)*100= 1.44%
In normal conditions, 1.44% of the production will be spoiled.
Answer:
$7,190.40
Explanation:
The computation of the net present value for the investment A is shown below:
= Present value after considering the discount factor - initial investment
where
Present value after considering the discount factor is
= Annual year cash inflows × PVIFA factor for 15% at 3 years
= $9,500 × 2.2832
= $21,690.40
Refer to the PVIFA table
And, the initial investment is $14,500
So, the net present value is
= $21,690.40 - $14,500
= $7,190.40