Calculate the annual cash flows of a $2 million, 10-year fixed-payment annuity earning a guaranteed 8 percent annually if the payments are to start at the end of this year.

Consider a two-period binomial model, where each period is 6 months. Assume the stock price is $50.00, ? = 0.20, r = 0.06 and the dividend yield = 3.5%. What is the lowest strike price where early exercise would occur with an American put option?

A) $50 B) $55 C) $60 D) $65

As an HR manager, what steps would you take to develop a competency statement? What resources would be beneficial in the process?

What will be an ideal response?