a) The expected value of the option's profit is -$105.
b) Based on the expected value of the option's profit being negative (-$105), it suggests that, on average, the trader is expected to lose money with this option.
To calculate the expected value of the option's profit, we can multiply the potential profits by their respective probabilities and sum them up.
Let's denote the profit if the stock goes up as X and the profit if the stock goes down as Y. We have the following information:
X = $150 (profit if stock goes up)
Y = -$700 (loss if stock goes down)
P(X) = 70% (probability of stock going up)
P(Y) = 1 - P(X) = 30% (probability of stock going down)
The expected value (EV) can be calculated as:
EV = P(X) * X + P(Y) * Y
Substituting the values, we get:
EV = 0.7 * $150 + 0.3 * (-$700)
EV = $105 + (-$210)
EV = -$105
Therefore, the expected value of the option's profit is -$105.
b) Based on the expected value of the option's profit being negative (-$105), it suggests that, on average, the trader is expected to lose money with this option. This indicates that the option may not be a favorable investment choice.
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What is decreasing marginal utility?
Answer:
Diminishing Marginal Utility. Consuming one candy bar may satisfy a person's sweet tooth. If a second candy bar is consumed, the satisfaction of eating that second bar will be less than the satisfaction gained from eating the first. If a third is eaten, the satisfaction will be even less.
13 Angie's Bake Shop makes birthday chocolate chip cookies that cost $2 each. Angie expects that 9% of the cookies will crack and be discarded. Angie wants a 65% markup on cost and produces 100 cookies. What should Angie price each cookie? (Round your answer to the nearest cent.)
Angie's Bake Shop produces 100 birthday chocolate chip cookies at a cost of $2 each. However, Angie expects that 9% of the cookies will crack and be discarded, which means that only 91% of the cookies will be available for sale. So, there are 91 cookies (100 x 0.91) left for sale.
Angie wants a 65% markup on cost, which means she wants to earn 65% more than the original cost of $2 per cookie. To calculate the markup amount, we can multiply the cost by the markup percentage: $2 x 0.65 = $1.3. Adding this markup to the original cost gives us the new selling price of $3.3 per cookie. However, since we have only 91 cookies left for sale, the total revenue from selling these cookies needs to be distributed over the initial 100 cookies produced to account for the losses due to cracked cookies. To find the adjusted selling price, we need to divide the total revenue by 100 cookies: (91 cookies x $3.3) / 100 cookies ≈ $3.00 per cookie.
Therefore, Angie should price each birthday chocolate chip cookie at approximately $3.00 to achieve her desired 65% markup on cost and account for the 9% of cookies that will be discarded.
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Can you describe what are the main areas of internal control
Finance should focus on?
The main areas of internal control that finance should focus on are:
Financial Reporting: Ensuring the accuracy, reliability, and transparency of financial statements is crucial. Finance departments should implement controls to verify the completeness and accuracy of financial data, perform regular reconciliations, and conduct independent reviews or audits to detect errors or fraud.
Cash Management: Proper control over cash is essential to prevent misappropriation or unauthorized use. Finance should establish segregation of duties, implement robust cash handling procedures, reconcile cash balances regularly, and maintain strong controls over payment processing and authorization.
Budgeting and Planning: Effective internal controls in budgeting and planning processes help ensure that financial goals and targets are met. Finance should establish controls to review and approve budgets, monitor actual performance against budgeted amounts, and implement variance analysis to identify and address deviations.
Asset Management: Controls over physical and intangible assets, such as inventory, equipment, and intellectual property, are vital. Finance should maintain accurate records of assets, implement controls to prevent theft or unauthorized use, conduct regular asset verification, and establish policies for asset acquisition, disposal, and depreciation.
Compliance: Finance plays a crucial role in ensuring compliance with laws, regulations, and internal policies. Internal controls should be in place to identify and mitigate compliance risks, such as implementing segregation of duties, conducting regular internal audits, and establishing processes for reporting and addressing non-compliance.
Risk Management: Finance should assess and manage financial risks to protect the organization's assets. This includes implementing controls to identify and mitigate risks related to credit, market fluctuations, liquidity, and operational disruptions.
By focusing on these key areas of internal control, finance departments can strengthen financial management, safeguard assets, promote accurate reporting, and mitigate risks, ultimately contributing to the overall financial health and success of the organization.
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The cost of interest of a $500 loan for 12 months is $21.88. What is the interest rate charged for the loan per year?
Answer:
4.19%
Explanation:
((500/(500+21.88)-1)*100
what is the potential for losing money in the stock market if an individual keeps their money invested for one year?
The potential for losing money in the stock market if an individual keeps their money invested for one year is greater than 1 in 4.
When some people consider investing, they concentrate on the potential for big gains—the chance of purchasing unheard-of stocks that skyrocket in value.
Others concentrate on the danger—the potential to lose everything in a stock market decline or due to poor investment selection.
Who's correct? It's true that there is risk involved with any investment. Additionally, it is true that one of the best methods to improve the amount of money you have available to achieve your goals is through investing (although an expectation of immediate riches is highly unrealistic).
In reality, there is frequently a direct correlation between an investment's level of risk and its possible return on investment.
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QUESTION 6 of 10: What markup percentage does New York magazine state that Macy's at Herald Square in New York City uses to mark up
accessories?
a) 72%
b) 127%
c) 185%
Od) 233%
In conclusion correct option for this question is (d) 233%
Why it is?
The markup percentage mentioned by New York magazine for accessories at Macy's in Herald Square is 185%. This means that the price of the accessory is marked up by 185% of its cost.
This markup percentage is considered high and may reflect the expenses that the store incurs, such as rent, salaries, and other operating costs. It is also likely that the markup is influenced by the store's brand recognition and the demand for its products.
However, a high markup may also deter price-sensitive customers, making it important for businesses to strike a balance between profitability and affordability.
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Competition among sellers (producers) lowers costs and prices, and encourages producers to produce more of what consumers are willing and able to buy.
A. Explain how the above (free market competition) would be an advantage for you, the consumer.
B. Describe how an oligopoly OR monopoly could inhibit competition among businesses.
Answer:
A. Explain how the above (free market competition) would be an advantage for you, the consumer.
Free market competition is advantageous to the consumer because it promotes the supply of many goods and services, at a lower price than other market structures like oligopoly or monopoly.
In the free market, there are many firms, none have market power, and they produce goods and services that have many substitutes. This means that if a firm raises the price of a good, consumers simply flock to another firm that offers a similar product. This mechanism obliges firms to offer their goods at the market-clearing price, which is the best price for the consumer.
B. Describe how an oligopoly OR monopoly could inhibit competition among businesses.
Oligopolies ocurr when there are only a few firms in the market, and monopoly ocurrs when there is only one firm. These two market structures allow firms to charge higher prices than the market-clearing price, and to supply less quantity than the market-clearing quantity.
Besides, oligpolies and monopolies are characterized by high barriers to entry and exit, which keep potential competing firms out of market, inhibiting competition.
Marketing managers at Nordstrom have had experts create initial forecasts, averaged their results, and then returned the averages to the experts to refine their individual forecasts. Which technique are Nordstrom managers using
Based on the provided information, the technique that Nordstrom managers were using is Delphi technique.
What is a Delphi technique ?Delphi technique can be regarded as the structured communication technique which is been developed to serve as interactive forecasting method that is based on a panel of experts.
Therefore, Nordstrom managers as using Delphi technique.
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Nora has heard that opening a lot of credit card accounts is a good way to build credit. She currently has five cards, but is sometimes forgetful in paying her bills on time and usually has a balance on each card. Her favourite store is offering a $50 coupon on her next purchase, with the promise of more coupons in the future, if she opens a credit card. She decides to open the store credit card to get the discounts.
How would Nora use the decision making steps in this scenario?
Is this a good or bad debt move? Why?
What is inflation?
Movement, whether upward or downward, of economic activity
Monetary value of final goods and services produced within a country for a specific time period.
The rate at which the price level of goods and services rises.
A measurement used by economics to measures average prices of a market basket of consumer goods and services.
In a market economy, equilibrium stays constant and never moves.
True or false
Answer:
false
Explanation:
there is always change in equilibrium any time demand or supply changes.
Who is Mollie and how is she characterized in Chapters 3 and 4?
Mollie enjoys being coiffed and petted and longs for human attention. As she misses eating sugar cubes and wearing ribbons in her mane, she struggles with her new existence on Animal Farm.
She is a representative of the Russian petit bourgeoisie that left the country shortly after the Russian Revolution.
The conceited mare that pulls Mr. Jones's carriage is flighty and vain. Mollie enjoys being coiffed and petted and longs for human attention. As she misses eating sugar cubes and wearing ribbons in her mane, she struggles with her new existence on Animal Farm. She is a representation of the Russian small bourgeoisie that left the country after the Russian Revolution. Mollie is a white horse in George Orwell's book Animal Farm.
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What is the WORST thing for a physical learner to do while studying?
Exercise
Role-play
Sit still at a desk
Tap a pencil
Answer:
Exercise
Explanation:
WHAT ARE MANAGED SERVICE OPERATIONS?
5) Si tuvieras que hacer un presupuesto de Ingresos y uno de Gastos ¿Cuál harías primero y que te sirva de base para hacer el otro? Explica tu respuesta
Answer:
Si tuviese que hacer un presupuesto de ingresos y uno de gastos, primero haría el de ingresos. Así, podría tener en cuenta la cantidad de dinero que mes a mes ingresa en mi patrimonio y de esta manera organizar mis gastos teniendo en cuenta no gastar mas dinero del que gano mensualmente.
Si, en cambio, organizara mis gastos antes que mis ingresos, me vería limitado posteriormente a realizar algunos gastos dado que no habría contemplado mi liquidez financiera mensual.
Suppose that a firm in a competitive market is currently maximizing profit at an output of 50 units. If the current price is $9, the marginal cost of the 50th unit is $9,and the average total cost of producing 50 units is $4, what is the firm's profit
Answer:
437
Explanation:
50 x 9 = 450-13=437
The Food and Drug Administration sets standards for
O advertising.
O product labeling.
O the environment.
O traffic safety.
Answer:
B. Product Labeling
Explanation:
From quizlet
The Food and Drug Administration sets standards for product labeling.
What is product labeling?Product labeling is the details information of what a products entails and this is often writing on the product.
Product labeling is an important standards set by Food and Drug Administration as this help the consumer to be know the following:
The product ingredientHow healthy or unhealthy the product are etcInconclusion the Food and Drug Administration sets standards for product labeling.
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Which promotional tool can be more effective when you are selling a complex product?
A. advertising
B. sales promotion
C. personal selling
D. public relations
Answer:
Personal selling
Explanation:
Personal selling is more flexible than other promotional tools such as advertising and sales promotion.
If a business decides to act outside of the prevailing ethical norms of that community.
Normative ethics is the branch of ethics that Ingrid's beliefs reflect. If a company decides to behave outside of the community's accepted ethical norms.
What are Normative ethics means?Normative ethics is the study of ethical behavior and the part of philosophical ethics that addresses concerns about how one ought to conduct morally. Normative ethics differs from meta-ethics in that the former investigates moral standards and the metaphysics of moral facts, whilst the latter investigates the meaning of moral language and the metaphysics of moral facts. Similarly, normative ethics differs from applied ethics in that the former is concerned with 'who ought one to be rather than the ethics of a particular topic. Normative ethics differs from descriptive ethics in that the latter is an empirical study of people's moral ideas. In this setting, normative ethics is also referred to as prescriptive ethics.
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if you deposit $ today into an account earning an annual rate of return of percent, what would your account be worth in 40 years?
The future value will be $135,011.97, if you deposit $ today into an account earning an annual rate of return of percent
The question statement does not include the values for years, interest rates, or present value. We presummed those values as a result. The present value at an interest rate of 11% is $3,500. a male of 35 years old. Future value equals Present value plus (r+1) n = $3,500 plus (1+1%) n = $3,500 x (38.57) = $135,011.97. A rate of return is the net gain or loss of an investment over a specified time period expressed as a proportion of the investment's initial cost (RoR). When calculating the rate of return, you decide what percentage changed from the beginning of the period to the conclusion. While the simple rate of return calculation ignores inflation, the actual rate of return calculation does. Internal rate of return considers the value of money over time (IRR).
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select true/false for the following question: an abstract class can contain concrete methods. group of answer choices true
The given statement "an abstract class can contain concrete methods" is true. An abstract class can contain concrete methods.
What is an Abstract Class?An abstract class is a class that contains at least one pure virtual function. An abstract class is a class that can't be instantiated. It's meant to be subclassed by other classes, which inherit its properties. It serves as a blueprint for other classes and may be extended by them.An abstract class may have both pure virtual functions and non-pure virtual functions, as well as data members and concrete methods. Concrete methods are a type of method that includes an implementation, whereas pure virtual methods do not.An abstract class may have both pure virtual functions and non-pure virtual functions, as well as data members and concrete methods. Concrete methods are a type of method that includes an implementation, whereas pure virtual methods do not.
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which type of chart would you create to compare expenses in each department as a percentage of all expenses?
Based on the information given, the best chart that can be used to represent the scenario will be an exploded pie chart.
A pie chart simply refers to a type of graph that's is used in displaying the data in a circular graph. In this case, the pieces are proportional to their fractions.
The exploded pie chart can be used in comparing the expenses in each department as a percentage of all expenses.
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Please help, I'm so behind. How is net pay different from gross pay?
Answer:
Quantity
Explanation:
gross is the total with no type of changes. Net is your total deductions such as tax or anything like that.
pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 15 % 32 % Bond fund (B) 9 % 23 % The correlation between the fund returns is 0.15. Suppose now that your portfolio must yield an expected return of 12% and be efficient, that is, on the best feasible CAL. a. What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The standard deviation of the portfolio is 7.09%.
What is the proportion of stock in minimum risky portfolio?= [(0.23)² - (0.32*0.23*0.15)] / [(0.32)² + (0.23)² - (2*0.32*0.23*0.15)]
= 0.31421708452
= 31.42%
What is proportion of bond fund in minimum risky portfolio?= 1 - 0.31421708452
= 0.68578291548
= 68.58%
What is the expected return of minimum risky portfolio?= 0.3142*15% + 0.6858*9%
= 0.04713 + 0.061722
= 0.108852
What is the standard deviation of your portfolio?= ((0.6858)² * (0.23)² * (0.3142)² * (0.33)²) + ((2 * 0.6858 * 0.3142 * 0.32 * 0.23 * 0.15))^0.5
= (0.00026747972 + 0.00475776218)^0.5
= 0.0050252419^0.5
= 0.0708889406
= 7.09%
Therefore, the standard deviation of the portfolio is 7.09%.
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Which statement best summarizes the law of demand ?
A. Sellers only supply goods that are in high demand from buyers.
B. Buyers are more likely to buy a products that is supplied in large quantities.
C. Sellers can easily substitute a product in high demand with another product.
S. Buyers are more interested in purchasing products as those products decline in price.
Thank you :)
Buyers are more likely to buy a product that is supplied in large quantities.
What is the law of demand?The law of demand states that the quantity purchased varies inversely with the price. In other phrases, the better the rate, the lower the quantity demanded.
What are the types of demand?Individual and Market DemandOrganization and Industry DemandAutonomous and Derived DemandDemand for Perishable and Durable GoodsShort-term and Long-term DemandLearn more about the law of demand here https://brainly.com/question/24019366
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The question ofâ reliability/unreliability of a multiple regression dependsâ on:
A.
internal and external validity.
B.
internal but not external validity.
C.
external but not internal validity.
D.
the quality of your statistical software package.
The question of reliability of a multiple regression depends on A) internal and external validity, not the quality of your statistical software package.
Regression analysis is a statistical method used to identify the relationship between two or more variables, and the reliability of this analysis depends on the validity of the data used and the methods used to collect it. The statistical software used is only a tool to perform the analysis and does not affect the reliability of the results.
Reliability in multiple regression is linked to both internal and external validity. Internal validity refers to the degree to which the results of a study are trustworthy and accurate within the study itself. External validity refers to the degree to which the results can be generalized to other populations, settings, or conditions.
Using appropriate statistical software can help ensure the proper analysis of the data, but it is the researcher's responsibility to ensure the validity of the study.
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Fill in the blanks Domain 2 lesson 3
Developing a sales presentation is part of the preparation step of a sales process.
What is involved in preparation step of a sales process?The preparation step of a sales process is crucial in ensuring the success of the sales interaction. In this stage, the salesperson researches the potential client, their needs and preferences, and prepares a strategy for approaching them.
All these includes gathering information on the client's industry, competitors, and business objectives. The salesperson should also research the client's budget and purchasing power to ensure that the product or service they are offering is a good fit.
In addition, the salesperson should prepare a presentation or proposal that highlights the unique value proposition of their product or service and how it can meet the client's needs.
Full question "Fill in the blanks Domain 2 lesson 3. Developing a sales presentation is part of the ________ step of a sales process. [Elements of a Sales Process]
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microeconomics is the branch of economics in which you study inflation and unemployment in the economy. true false
The answer is False, The decisions made by people and businesses to allocate resources for production, exchange, and consumption are the subject of microeconomics.
What is Microeconomics?The study of microeconomics focuses on the probabilities (tendencies) that result from people making decisions in response to shifting incentives, prices, resources, and/or production processes. Microeconomic subgroups for individual actors, like customers, sellers, and business owners, are frequently formed.
Microeconomics has both constructive and normative applications. Positive microeconomics explains how the economy behaves and what to anticipate when particular circumstances change. Positive microeconomics predicts that buyers will often purchase fewer cars if a manufacturer raises the price of their vehicles. Due to limited supply, copper prices will often rise if a significant South American copper mine falls. If consumers purchase fewer iPhones, positive microeconomics may help an investor understand why Apple Inc. stock prices may decline. The Wendy's Company might be forced to hire fewer workers as a result of a higher minimum wage, according to microeconomic theory.
Basic Concepts of Microeconomics
Incentives and behaviours: How individuals or groups respond in response to the circumstances they face.
Utility theory According to the utility hypothesis, consumers will select and use a mix of items to maximise their enjoyment or "utility," within the limits of the amount of money they have to spend.
Production theory is the study of the process through which inputs are transformed into outputs. In order to maximise their earnings, producers aim to select input combinations and methods of combination that will result in the lowest cost.
Price theory: The theory of supply and demand, which governs prices in a competitive market, is the result of the interaction between utility theory and production theory. In a market that is intensely competitive,it concludes that the price demanded by consumers is the same supplied by producers. That results in economic equilibrium.
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Please use complete sentences.
What are things you can do to manage the risks in your life to reduce any financial losses?
There are a few things you'll be able do to manage risks in your life and reduce financial losses.
What are things you can do to manage the risks in your life to reduce any financial losses?One of the foremost imperative steps is to survey your dangers and distinguish potential threats, such as ailment, mishaps, or natural disasters. Once you have got recognized your dangers, you'll be able take steps to play down them, such as keeping up a sound way of life, practicing secure driving propensities, and securing your home and property.
Another imperative way to manage risk is to purchase insurance. Insurance policies can offer assistance secure you from monetary misfortunes within the occasion of an mishap, sickness, or other unforeseen occasion. Types of protections approaches you may consider incorporate wellbeing protections, life protections, inability protections, and homeowner's protections, among others.
Furthermore, it is critical to have an emergency fund in place. An an emergency fund can assist you cover unforeseen costs and avoid going into obligation within the occasion of an crisis. Specialists prescribe having at slightest three to six months' worth of living costs spared in an crisis finance.
Conclusively, it is critical to remain educated and educated about dangers and how to oversee them. You will need to consider working with a budgetary advisor who can assist you distinguish and oversee your risks, as well as create a long-term budgetary arrange that takes your dangers and objectives under consideration.
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A $20 bill features which of the following on the reverse?
A. US Treasury
B. White House
C. US. Capital
D. Independence Hal
Answer:
B. White House
Explanation:
A portrait of the White house is the main feature visible at the reverse of a $20 bill. The bill has security features, but the White house Image is dominant. At the front, a portrait of the 7th US president Andrew Jackson is visible