Peter holds a European put on Nike stock with a strike price of $100 that expires in 1 year. Suppose that the price of Nike stock in 1 year is $70 and that Peter will make the exercise decision optimally. Which of the following statements is correct? A. Peter will choose to exercise in 1 year and will receive a payoff in 1 year of $70 from holding the option.
B. Peter will choose to exercise in 1 year and will receive a payoff in 1 year of $30 from holding the option.
C. Peter will choose not to exercise in 1 year and will receive a payoff in 1 year of $30 from holding the option.
D. Peter will choose not to exercise in 1 year and will receive a payoff in 1 year of $0 from holding the option.
E. There is not enough information to determine whether Peter will exercise the put option, or what his payoff will be in 1 year from holding the put option.

Grace period is a period of time before the credit card company starts charging late fees.truefalse

Aproduction order quantity problem has a daily demand rate = 10 and a daily production rate = 50. the production order quantity for this problem is approximately 612 units. what is the average inventory for this problem?

Shelby company produces three products: product x, product y, and product z. data concerning the three products follow (per unit): product x product y product z selling price $ 85 $ 65 $ 75 variable expenses: direct materials 25.50 19.50 5.25 labor and overhead 25.50 29.25 47.25 total variable expenses 51.00 48.75 52.50 contribution margin $ 34.00 $ 16.25 $ 22.50 contribution margin ratio 40 % 25 % 30 % demand for the company’s products is very strong, with far more orders each month than the company can produce with the available raw materials. the same material is used in each product. the material costs $8 per pound, with a maximum of 4,400 pounds available each month. required: a. compute contribution margin per pound of materials used. (round your intermediate calculations and final answers to 2 decimal places.) contribution margin per pound product x $ product y $ product z $ b. which orders would you advise the company to accept first, those for product x, for product y, or for product z? which orders second? third? product x product y product z