Difference between 'actual' and 'ideal' state (Problem Recognition): Triggers a _______

Fill in the blank(s) with the appropriate word(s).

Ans: decision

Business

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A stock price (which pays no dividends) is $50 and the strike price of a two year European put option is $54 . The risk-free rate is 3% (continuously compounded)

Which of the following is a lower bound for the option such that there are arbitrage opportunities if the price is below the lower bound and no arbitrage opportunities if it is above the lower bound? A. $4.00 B. $3.86 C. $2.86 D. $0.86

Business

Which of the following is an action that allows the companies to collaborate without formally combining?

A) strategic alliance B) joint venture C) merger D) acquisition E) amalgamation

Business