Applications of option pricing to corporate finance Fantastique Inc. has a one-year proprietary license to develop software essential for creation of a new generation of FastGadgets. The project’s estimated cost is $25 million. If consumers love the new FastGadget, Fantastique’s revenues will skyrocket. Otherwise, if sales of FastGadgets turn out to be low, Fantastique will be ruined. Fantastique has an option similar to a option, which enables it to minimize the risk by taking the following action:. A. Wait for a year and then undertake the project if there is a great demand for the FastGadget.
B. Undertake the project now to get ahead of the industry in creating the software.
C. Abandon the project now because it is too risky.
D. Wait for a year and then sell the license if consumers love FastGadget.

Aconsumer values a house at $525,000 and a producer values the same house at $485,000. if the transaction is completed at $510,000, what level of tax rate will result in unconsummated transaction?

Which of the following accurately describes one way that individual goods differ from public goods? a. people can be excluded from using individual goods if they don't pay. b. all individual goods are normal goods. c. demand for individual goods is always inelastic. d. consumer rivalry results in decreasing marginal utility for individual goods.2b2t

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?