AMD is currently trading at a price of $80 per share. In one year from today, the price of AMD shares will either be $100 per share or $70 per share with equal probabilities. These interest rate for borrowing and lending is 10% per annum. Use the binomial option-pricing model find the price of a European call option with an exercise price of $90 that expires in one year from today.

Amanufacturing firm is considering overhauling the existing compensation strategy. currently every front line employee who works on the assembly line earns the same hourly wage. ideally, management would like to institute a new pay system that involves pay-for-performance. which of the following recommendations is both consistent with scientific management's general emphases and generally good advice for management of this firma. the firm should adopt a differential pay system with one pay level for average performance, and a higher level for good performance. b. the firm should adopt a differential pay system, but the firm should modify it from its original design and provide many different levels of pay associated with different performance levels. c. the firm should understand worker psychology and to focus on pay as the key motivator. d. all of the abovee. none of the above