Which of the following causes a volatility smile that is a ``frown``?
A. There is a small probability of a large stock price decrease in one week
B. There is a small probability of a large stock price increase in one week
C. The outcome of a lawsuit (roughly equal chance of being favorable or unfavorable) will create a large movement up or down in one week
D. None of the above
C
As shown at the end of the chapter the situation in C leads to a "frown"
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A) that current liabilities are 37.93% of total equity B) a 45.28% increase in current liabilities C) a current ratio of 0.88 D) a 31.17% increase in current liabilities
Calculate the net profit generated by Cabaye Inc. if it obtains a return of 12% from the owner's equity amounting to $675 million
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