What is option?

Q: What is the IRR of this offer?

A: Capital budgeting methods are the used for finding the profitability of capital projects. It is a…

Q: What is meant by a “real option”?

A: Real option: It may be a selection made open to a firm's managers about the prospects for trade…

Q: What is the best-case scenario?

A: When companies are uncertain about the details of a project such as costs, inflows, interest rate…

Q: which alternative is the best choice?

A: Time value of money(TVM) means that the amount of money received in the present period will have…

Q: What is the difference between a Put option and a Call option? Explain. Provide examples.

A: Option is a derivative instrument which gives a choice to its buyer to buy or sell the underlying…

Q: What is horizon value?

A: Horizon value is the value of the project or the security at the end of a specified future date. The…

Q: Explain what is Make-or-Buy Decision?

A: Decision making: It is a vital capacity in the management, since decision making is identified with…

Q: What is the going concern assumption?

A: Going concern Assumption: On the basis of Going concern assumption Financial statements are…

Q: How widely used is real option analysis?

A: Real option analysis is the analysis of a company’s opportunity cost of an investment or a…

Q: what is the difference between a call option and a put option?

A: There are two types of options one is call option and other is put option and both are derivative…

Q: What is a call option?

A: The contract that the option writer sells to the option holder is represented by an option, which is…

Q: What exactly does the term "FMS option" imply and what is its significance?

A: A flexible manufacturing system (FMS) can boost productivity and minimize production costs. Flexible…

Q: What is naked call option?

A: An option is a financial derivative giving the buyer of option to buy or sell the option at a price…

Q: What Does RiskReally Mean?

A: Risk: Risk can be defined as upcoming uncertainty about variation from anticipated earnings or…

Q: What are the Monroe plans?

A: Munroe Plan is a health care service organization that meets the needs of low-income as well as…

Q: What is lien?

A: Lien: This is a case or legitimate right against properties normally utilized as collateral so as to…

Q: What is fundamental value or price?

A: Fundamental value is a measure of what an asset's worth. This gauge is acquired by methods for an…

Q: What is an option? A call option? A put option?

A: Option: An option is a special type of contract which gives its holder the right but not obligation…

Q: What is the definition of "FMS option"?

A: Stock Option: An investor who purchases a stock option has the right, but not the responsibility, to…

Q: FMS option

A: An option is the right to purchase a stock (or another asset) at a predetermined price and time. On…

Q: What is the FMS option?

A: FMS: Flexible manufacturing system

Q: What is a constraint?

A: Internal Control:   It refers to a set of rules, policies adopted by a business to ensure accuracy…

Q: What is offer price?

A: Bid price is the maximum price which the buyer is willing to pay to purchase. In other words, it…

Q: What is forex

A: A financial market is a marketplace where financial securities are being created and traded between…

Q: What is flexibility option?

A: A financial instrument that provides the opportunity to the buyer and seller to purchase and sell…

Q: Determine the theoretical ex-rights price?

A: The determination of the theoretical ex-rights price is generally done when stocks are issued and…

Q: Is the accept-or-reject decision rule the same as in the simple -investment case? Explain how?

A: Yes, accept or reject decision rule is the same as in the simple investment because accept or reject…

Q: What are some types of real options?

A: Real options is defined as a capital budgeting decision with which the management may make a future…

Q: What exactly does "FMS option" mean?

A: The term FMS stands for flexible manufacturing system. It is a manufacturing system which is…

Q: Explain put option

A: Introduction: This question is related to the concept of financial derivatives. Derivative…

Q: what goes where?

A: Let us recall 3 golden rules of accounting: Debit the expense, credit the income. Debit what comes…

Q: What is contra?

A: Contra in accounting terms means an account with balance that has opposite of the normal balance and…

Q: What is the make or buy decision?

A: Managerial accounting:   Managerial accounting is more focused towards analyzing information and…

Q: what is Political cost hypothesis ?

A: The financial statement will be prepared by the company to know the financial position of the…

Q: What is a real option?

A: Real option It may be a selection made open to a firm's supervisors approximately the commerce…

Q: what is materiality?

A: Materiality is an accounting concept that signifies the importance of an item to users of financial…

Q: . What is its present value?

A: Introduction: Compound interest can be defined as the interest on either a loan or a deposit which…

Q: what is opportunity risk

A: Opportunity risk is a the risk off loosing a better opportunity i.e. if you have invested in a…

Q: What is a real option? What are some types of realoptions?

A: Real options: Real options are considering as right but not obligation to take a business decision.…

Q: What is an Option Contract?

A: An Option contract is an agreement between two parties to buy or sell an underlying asset, at a…

Q: What is value at risk, VaR?

A: Value at Risk (VaR) is a financial metric that estimates the risk of an investment. More…

Q: What is simple interest?

A: Interest is the amount a cash flow earns as a result of owning or investing a sum of money. It can…

Q: What is notional value?

A: Notional value is used to value the underlying asset. In simple words it tells how much of value a…