Which one of the following statements is true?
A. An American style out-of-the-money call option can have a positive value.
B. The time value of an option is equal to the intrinsic value minus the option premium.
C. A call with a strike price of $25 and a stock price of $23 has positive intrinsic value.
D. A European style option is more valuable than an American style option.
E. A $40 put option has more intrinsic value than a $50 put option on the same underlying asset.
Answer: A
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Answer the following statements true (T) or false (F)
1. According to Michael Porter, three service strategies include a lower price, a differentiated product, and finding a market niche. 2. Scenario planning and the Delphi technique are quantitative forecasting techniques. 3. The best of strategic plans may have to be changed, because the future is uncertain. 4. Three important factors that will influence future hospitality organizations are changing technology, the entry of Generation Y into the workforce, and changes in market segment definitions. 5. Some factors that will affect future hospitality organizations are predictable and simple, like estimating how many teenagers will be available for work in ten years.
Answer the following questions: A. What is the formula to compute working capital? B. What does it measure? C. What would be the implication for a company that has negative working capital?
Nathan needs to minimize the errors in processing complex telephone orders that include a series of steps. He should:
a. prepare a flow chart. b. prepare a series of concise paragraphs. c. put procedures in bullet format. d. None of these are correct.
Bianca's discount home furnishings store is in a strip mall. She wants to know what other businesses in the strip mall her customers visit when they come to her store. To collect information for this objective, Bianca will most likely use
A. door-to-door surveys. B. census data. C. sales invoices. D. focus group interviews. E. observation.