Discuss the factors that determine the value of a call option.
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The value of a call option is determined by five factors. They are stock price, exercise price, risk-free interest rate, volatility of the stock price, and time to expiration. An increase in exercise price will decrease the value of the option. An increase in any of the other factors will increase the value of the option.
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All of the following statements about the overall marketing program for 3M's Post-it Flag Highlighters are true EXCEPT:
A. Students were initially the intended target market for the Post-it Flag Highlighter. B. David Windorski, the designer of the Post-it Flag Highlighter, appeared on The Oprah Winfrey show so she could thank him in person for "his most incredible invention." C. In his first attempt, David Windorski, a 3M inventor, designed the Post-it Flag Highlighter in exactly the right way to appeal to its target market. D. David Windorski, a 3M inventor, designed the second generation of Post-it Flag Highlighters and Pens WITHOUT the rotating cover to make it easier to insert replacement flags. E. Recently, 3M introduced additions to the Post-it Flag+ line: a Post-it Flag+ Gel Pen and a Post-it Flag+ Permanent Marker.
Differentiate between consumer buying and organizational buying and give an example of each.
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The equity method records the initial purchase of an investment in voting common stock at _____. Each period, the investor treats as revenue its share of the _____ of the investee. The investor treats dividends declared by the investee as _____
a. acquisition cost; dividends; income b. acquisition cost; periodic earnings; a reduction of the investor's investment in stock of the investee account c. present value of future cash flows; dividends; a reduction of the investor's investment in stock of the investee account d. present value of future cash flows; periodic earnings; a reduction of the investor's investment in stock of the investee account e. future value of present cash flows; dividends; a reduction of the investor's investment in stock of the investee account
Explain the legislative, executive, and judicial powers delegated to administrative agencies through enabling legislation
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