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Why should a business weigh the advantages and disadvantages of each ownership option ?
Explain how product form pricing may be pricing option at Quills?
When the binomial tree has a large numbers of steps (i.e. the time interval between nodes is very small). The spreadsheet in the related link prices options using Black-Scholes analytical equations and a binomial tree. As the number of steps in the binomial tree increase, the results of both approaches becomes equal to many decimal places.
b) Binomial pricing model doesnt provide for the possibility of price of the underlying remaining the same between two consecutive time points (it assumes that either the price could go up or could come down; it completely ignores the possibility of the price not changing at all) a) Binomial pricing model breaks up the time to the expiry of option in to a limited number of time intervals and hence, the price calculated through binomial trees is more of a broad approximation of the actual price. (Compare this with Black Scholes (BS) Model which gives a more accurate approximation because the BS model involves breaking the time to expiry into infinitesimaly small time intervals).
Advantages- You can select the option very quickly you do not require any training to use it Disadvantages-The system is sensitive It is limited to certain applications
This is done so that a business will know exactly what type or form of business is right for them.
advantages opening up of insurance aboon to financial market , customers more option for customers better services wider choice cheaper products disadvantages price war unhealthy practices misuse of public funds misuse and irregularities unethical practices
To learn about option pricing you can go to a website about investing like Investopedia or Money Week. You can also talk to a financial advisor or investment broker.
The above ground pool option has many advantages, They are safer, cheaper and easier to build. But the In-ground pool can be handicap accessible, It is also durable and comes with endless design possibilities.
It's the cheapest option, other than that there are no advantages.
There's no single key factor, but several key factors. These areCurrent asset pricestrike pricevolatilityrisk free ratedividend (continuous or discrete)time to maturityThese factors affect the option price. See the related link for actual examples of option pricing in practise
The disadvantages of using a compass for surveying is that readings are often inaccurate (accuracy dependent on size and graduations of compass, it is easily disturbed by effects of local magnetic attraction