value. This implies that the company has relatively lower proportion of liabilities in its assets. This further stretches out to an assumption that the company has greater capability in paying debt back in next 12 months, hence inhabiting higher probability in meeting creditors’ demands.
- Considering the industry’s exclusive characteristics, there are no inventories for both companies. Thus
CASE 4
Part 1:
A. Describe the cost flow assumptions used in average cost, FIFO and LIFO methods of inventory valuation.
-The average cost method assumes cost of goods sold and ending inventory consist of a mixture of all the goods available for sale. The average unit cost applied to goods sold or to ending inventory is not simply an average of the various unit costs of purchases during the pe
value of up-tick and down-tick is smaller than the value of ‘S-K’, show ‘S-K’, if the option price is larger, then show.
For the put options,
=IF((EXP(-$D$5*옵션가격!$K$2)*(B13*$I$5+B15*$J$5))value among K-S and the option value.
Part 5. Implied volatility