Suppose the stock price in the first period is still $60. In the second period, the stock price will increase to $120 with a probability 70%, and this price will continue to change in the third period, with a probability 40% of increasing to $150 and a probability 60% of decreasing to $100; in the second period, the stock price will go down to $30 with a probability 30%, and this price will also continue to change in the third period, with a probability 40% of going up to $65 and a probability 60% of going down to $20. The call option you buy will expire in the third period and the exercise price is still $70. The interest rate is still assumed to be 5%. Calculate the present value of your expected profit.

Acompany factory is considered which type of resource a.land b.physical capital c.labor d.human capital

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.

In north korea, a farmer’s income is the same as a dentist’s income. in a country with a mixed or market economy, the difference between those two professions might be more than 5 times different. how can you explain the fact that individuals doing the same work in different countries do not earn comparable salaries?