Let’s walk through how we would price a put in a two-state pricing model. Suppose the current price of the stock is $83. The stock pays no dividends and will be worth $90 if the economy booms and $80 if the economy stalls one year from now. Suppose also that the risk-free rate is 3% per year. (6a) Suppose we have a (European) put with time to expiration of 1 year, and a strike price of $85. What is the price of this put option?

When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.