Question
When hired at a new job selling electronics, you are given two pay options: Option A: Base salary of $10,000 a year with a commission
- When hired at a new job selling electronics, you are given two pay options:
Option A: Base salary of $10,000 a year with a commission of 9% of your sales.
Option B: Base salary of $19,000 a year with a commission of 4% of your sales.
Write down a model for each option. How much would you need to sell for option A to produce a larger income?
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An Introduction to the Mathematics of Financial Derivatives
Authors: Ali Hirsa, Salih N. Neftci
3rd edition
012384682X, 978-0123846822
