When there are two dividends on a stock, Black's approximation sets the value of an American call option equal to which of the following
A. The value of a European option maturing just before the first dividend
B. The value of a European option maturing just before the second (final) dividend
C. The greater of the values in A and B
D. The greater of the value in B and the value assuming no early exercise
D
For Black's approximation we calculate a) the value of the option assuming no early exercise and b) the value of the option assuming that the exercise decision is made immediately before the final ex-dividend date. The value of the option is set equal to the greater of these two values.
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The profit-and-loss-sharing ratio among Simonsen, Paulson, and Richardson is 1:3:2, in the order given. Paulson is retiring from the partnership on December 31, 2017. Paulson is paid $230,000 cash in full compensation for her capital account balance. Which of the following is TRUE of the journal entry prepared at the time of retirement? (Round the final answer to the nearest dollar.)
Simonsen, Paulson, and Richardson are partners in a firm with the following capital account
balances:
A) Debit Paulson's capital account by $230,000.
B) Debit Richardson's capital account by $35,000.
C) Debit Simonsen's capital account by $23,333.
D) Debit Income Summary by $70,000.
Which of the following is NOT true of reference groups?
A) Reference groups do not carry the weight of authority. B) Consumers look to reference groups to guide their buying behavior. C) Individuals use reference groups to anchor their own beliefs and attitudes. D) Reference groups are familiar to consumers. E) Reference groups are not a recent phenomenon.
Which of the following components of an information system is the easiest to change and results in the least amount of organizational disruption?
A. procedures B. protocols C. hardware D. database E. software
Which of the following documents provided by a seller represents cost?
A. bill of lading B. air waybill C. invoice D. insurance policy