Assume S = $31.75, div = 0, r = 0.03, and ? = 0.20, and 90 days until the expiration of a standard call option. A put on call compound option with an exercise price of $2.00 has 180 days until expiration

What is the premium of the put on call option?
A) $0.42
B) $0.48
C) $0.85
D) $1.11

A

Business

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A tailor decides to use Taguchi's quality loss function to analyze his shirt making process

Knowing it to be parabolic in shape and of the form L(y) = k(y - t)2 where t is the target, y is the actual measurement, and k is the process constant, the tailor decides to use a recent customer order to calculate his process parameters. He takes the custom shirt and measures the collar, which was requested to have a 17.5" collar but actually has a 17.75" collar. The customer notices the difference and demands a 50% reduction in the price of the shirt, which cost the tailor $45 to make. Instead of selling the shirt for $175, the tailor will reduce his price to $87.50. What is the tailor's process constant for a silk shirt? What will be an ideal response?

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