What are the major variables in the Black-Scholes option pricing model and in what direction do they influence the price of call options?
What will be an ideal response?
Answer: All things equal, the value of a call increases with the price of the underlying stock. The value of the call increases as the strike or exercise price decreases. The value of the call increases as the time left to expiration increases. The expected volatility of the price and the risk-free rate of return increase the price of the option as they increase. As the stock's dividend yield increases, the price of the option decreases.
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Which of the following advises and assists the cost center, profit center, and investment center managers in preparing the budget?
a. the financial reporting officer b. the budgeting department c. the treasurer d. the managerial reporting officer
________ requires putting yourself in the customer's place and trying to relate to the customer's needs, wants, and concerns.
A. Convergence B. Congruence C. Empathy D. Responsiveness
Chocolate Sundry LLC's members and managers are Devlin, Effie, and Flavia. After Devlin's relationship to the firm ends, Effie and Flavia agree to discontinue the business. This is
A. illegal. B. optional. C. required. D. wrongful.
State supreme court decisions cannot be appealed
Indicate whether the statement is true or false