The value of a European style call option is the sum of two components:
A) the present value plus the intrinsic value.
B) the time value plus the present value.
C) the intrinsic value plus the time value.
D) the intrinsic value plus the standard deviation.
Answer: C
Business
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Tianhui was recently hired as a sales representative by Oxtron, Inc Before leaving on his first sales trip, a number of the other sales representatives take Tianhui aside and tell him that it is customary for the sales representatives to "pad" (increase) their expense reports each month by 20%. Use utilitarian ethics to decide what Tianhui should do about the expense report he submits to Oxtron
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For a standard normal distribution, the probability of obtaining a z value between -2.4 to -2.0 is
a. 0.4000 b. 0.0146 c. 0.0400 d. 0.5000
Business