A company issues an option grant with an outperformance feature, against the S&P 500
Assume S&P 500 = 950, S = 22, k = 25, ? = 0.25, r = 0.06, and 5 years until expiration. The S&P 500 has a dividend yield of 2%, standard deviation of 18.0% and a 0.30 correlation coefficient with the stock. What is the value of the outperformance feature?
A) $0.99
B) $1.31
C) $1.59
D) $1.72
C
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In Vagias v. Woodmont Properties, Vagias wanted to buy a house in Montville. He told his real estate agent that he wanted to buy in that location because of the school district's reputation. The agent showed him a house in a development called "Woodmont Court at Montville." Vagias asked if the house was within the jurisdictional limits of Montville. The agent and a representative for the builder, neither of whom were familiar with the township boundaries, assured him it was within the city limits. Vagias bought the house but was unable to enroll his son in the school district because the property was outside the city limits. Vagias sued, claiming he paid a premium for the house based on the school district's reputation. The homebuilder argued that the misrepresentations were
unintentional and that Vagias did not suffer a loss in the value of his home. The court held that A. Woodmont was liable because the real estate agent showed Vagias a house that did not meet his requests. B. Woodmont was not liable because the New Jersey Consumer Fraud Act does not apply to real estate. C. Woodmont was not liable because the misrepresentation was not intentional. D. Woodmont was liable because the location of the house was the basis of the bargain and the misrepresentation was affirmative, thus meeting the requirements of the New Jersey Consumer Fraud Act.
Entering foreign markets is an example of a:
A) product development strategy. B) market penetration strategy. C) market development strategy. D) market modification strategy.
_____ are the most powerful computers at any given time, but are built especially for assignments that require arithmetic speed.
A. Mainframe computers B. Mega-servers C. Supercomputers D. Workstations
Once the petty cash fund is established, an entry is made to Petty Cash each time the amount of the fund is changed
Indicate whether the statement is true or false