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murzikaleks [220]
2 years ago
7

In early April, an investor buys 1 XYZ Oct 60 call for $9 and sells 1 XYZ Jul 70 call for $4. If the investor buys back the Jul

call for $1 and sells the Oct call for $12, what will the pretax profit or loss be?
Business
1 answer:
goldfiish [28.3K]2 years ago
6 0

Answer:

$600 profit

Explanation:

bought Oct Call at $9 and sold at $12 = $3 profit
sold Jul Call at $4 and bought back at $1 = $3 profit
total profit $6 per option x 100 shares = $600

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In a market there is a shortage of a good. What change would cause the market to come to an equilibrium?
Oksi-84 [34.3K]

Answer:

D) a rise in price

Explanation:

At the equilibrium point, the quantity demanded and the quantity supplied are the same. There is no excess shortage or supply in both demand and supply.

A shortage occurs when suppliers are not able to meet the market demand. Here, demand is the quantity that buyers are willing to buys at a specific price over time.  As per the law of demand, high product price causes demand to decrease while low price results in increased demand.

A shortage of a product means its demand is high. Many buyers are willing to buy the commodity at the current price.  As per the law of demand, a price increase will result in reduced demand and achieve equilibrium.

3 0
3 years ago
Imagine that a local water company issued $10,000 ten-year bond at an interest rate of 6%. You are thinking about buying this bo
mylen [45]

Answer:

Explanation:

The $10,000 is the face value of the bond. Using a financial calculator, input the following to calculate the price at a year before maturity; i.e. at year 9;

Time to maturity; N = 10 - 9 = 1

Annual interest rate; I/Y = 9%

Annual coupon payment; PMT = 0

Face value of the bond; FV = 10,000

then compute present value ; CPT PV = $9,174.31

Therefore, you will pay less than $10,000 for the bond and the price would be  as above $9,174.31

6 0
3 years ago
PLEASE HURY
horsena [70]

Answer:

your answer is C I am not 100% sure

7 0
3 years ago
You are the director of marketing. Your department has been doing well, but the company as a whole has been losing revenue stead
garik1379 [7]

Answer:

I. Thank employees for being willing to make a sacrifice for the good of the company.

II. State the facts of the company's financial situation.

III. Inform employees that they will receive a 15% pay cut.

IV. Close with forward looking statement.

Explanation:

The company's financial situation has led the managers to decide for a pay cut instead of lay off to improve the financial position of the company and stay in the budget. The company should appraise employees that they understand the company's situation and are willing to accept the pay cut. The director should inform employees about the current financial situation and provide details about the pay cut plan. The email should close with a forward looking statement and a statement that as soon as the situation of company gets better the employees will receive full salaries as always.

7 0
3 years ago
1. Assume that Lyn Addie is an unmarried employee. Her $1,000 of wages have deductions for FICA Social Security taxes, FICA Medi
fredd [130]

Answer:

Net pay $764.5

Explanation:

given data

wages = $1000

income taxes  = $159

solution

particular                              net pay

Gross wages                        $1000

less  

Income taxes withheld         $159

FICA-social security             (1000×6.2%)    = $62

FICA-Medicare taxes           (1000×1.45%)   =       $14.5

Total taxes withheld             (235.5)

So, Net Pay                            $764.5

5 0
3 years ago
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