Data: S0 = 130; X = 143; 1 + r = 1.1. The two possibilities for ST are 160 and 109. a-1. The range of S is 51 while that of C is 17 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) a-2. Calculate the value of a call option on the stock with an exercise price of 143. (Do not use continuous compounding to calculate the present value of X in this example because we are using a two-state model here; the assumed 10% interest rate is an effective rate per period.) (Do not round intermediate calculations. Round your answer to 2 decimal places.)

The rybczynski theorem describes: (a) how commodity price changes influence real factor rewards (b) how commodity price changes influence relative factor rewards. (c) how changes in factor endowments cause changes in commodity outputs. (d) how trade leads to factor price equalization.

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. what is another way to state this fact? (a) market supply is much more elastic in the long run than the short run. (b) in the long run, average total cost is minimized. (c) in the long run, price equals marginal cost. (d) market supply is much less elastic in the long run than the short run.

According to ceo heidi ganahl, camp bow wow requires a strong and consistent corporate culture to keep all local franchise owners "on the same page" and to follow a common template for the business and brand. this culture could become detrimental over time because: (a) strong consistent cultures are inflexible and incapable of adapting to environmental change (b) strong consistent cultures are too flexible and capable of adapting to environmental change (c) strong consistent cultures don’t perform well in any environment (d) the passing of time provides stability and predictability for businesses