What is the value of an asset which pays $200 a year for the next 5 years and can be sold for $1,500 at the end of five years from now? Assume that the opportunity cost is 10 percent

Bodine Corp has a contract to deliver cleaning products to the community center. The contract with the aquatic center states that the first 500 gallons of cleaner will cost $16 per gallon. However, the cost will drop to $12 per gallon for all purchases over 500 gallons. Based on its experience, Bodine Corp estimates that the center will use 800 gallons of chemicals. What transaction price per

gallon should Chlorine use for this contract? ? A) $16.00 B) $14.50 C) $14.00 D) $12.00

The Black-Scholes-Merton model can be used with currency options by replacing the dividend yield with the foreign interest rate

Indicate whether the statement is true or false