Acall option with exercise price x on an asset pays max(as − x, 0) in state s, where as is the asset payoff in state s. suppose that only asset a exists in this market (not b or c), but that call options on asset a may also be bought or sold with any desired nonnegative exercise price x. show how to synthetically construct the arrow–debreu securities, as well as the risk-free asset

Which job role belongs in the middle management level? a. president b. chief executive officer c. department manager d. chief operating officer e. vice president

Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct.d.

Apopular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. which component of the competitive environment does this illustrate? a) threat of new entrants b)competitors c) economic factors d) customers d) regulators