1. Consider the index SP2 which is made up of firms A and B. The current share price of Firm A is 50 while it is 100 in the case of B. You obtain the following data about at-the-money call options with maturity one year: Firm A Firm B SP2
50 100 60 Strike
6.13 8.53 6.68 Premium
25% 15% 22% Implied volatility

The implied correlation between Firm A and B assets is closest to:

Implied correlation is the correlation between Firm A and B implied by the Black-Scholes model

a) 0.625
b) 1.44
c) 0.456
d) -0.35

Match the vocabulary word to the correct definition. 1. compensation 2. corporate social responsibility 3. discrimination 4. benefits 5. biodegradable a. a business’s obligation to the community and the environment b. the ability to naturally break down or decompose c. treating someone differently because of his or her race, religion,gender, sexual orientation, or disabilities d. indirect and non-cash compensation paid to employees e. the salary and other benefits for doing a job

Turtle corporation produces and sells a single product. data concerning that product appear below: per unit percent of sales selling price $ 150 100 % variable expenses 75 50 % contribution margin $ 75 50 % the company is currently selling 5,600 units per month. fixed expenses are $194,000 per month. the marketing manager believes that a $5,300 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. what should be the overall effect on the company's monthly net operating income of this change?

In north korea, a farmer’s income is the same as a dentist’s income. in a country with a mixed or market economy, the difference between those two professions might be more than 5 times different. how can you explain the fact that individuals doing the same work in different countries do not earn comparable salaries?