An investor purchased Option A and Option B for a certain stock today, with strike prices 70 and 80, respectively. Both options are European one-year put options. Determine which statement is true about the moneyness (in-the-money means that it has positive payoff to the holder, out-of-the-money means it does not) of these options, based on a particular stock price.



I) If Option A is in-the-money, then Option B is in-the-money.

II) If Option A is at-the-money, then Option B is out-of-the-money.

III) If Option A is in-the-money, then Option B is out-of-the-money.

IV) If Option A is out-of-the-money, then Option B is in-the-money.

V) If Option A is out-of-the-money, then Option B is out-of-the-money.

You operate a small advertising agency. you employ two secretaries, a graphic designer, three sales representatives, and an office coordinator. 1. what types of things would you consider when determining how to compensate each position? describe two (2) considerations. 2. what type of compensation plan would you use for each position?

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times

In a recent annual report, apple computer reported the following in one of its disclosure notes: "warranty expense: the company provides currently for the estimated cost for product warranties at the time the related revenue is recognized." this note exemplifies apple's use of: (a) conservatism.(b) matching. (c) realization principle. (d) economic entity.