Answer:
[C] Strike price minus the premium
Explanation:
A put buyer refers to the one who purchases a right (and not the obligation) to sell(put) the underlying asset at a pre determined strike price/exercise price at a future date.
A put buyer is under no obligation to exercise his right of selling the underlying asset. He will exercise his right only when his strike price is greater than the current market price upon expiry of the contract.
Put Buyer's profit is expressed as;
= Strike price - Option premium paid - Current market price upon expiry
Thus, his NET sales proceeds are equal to his Strike Price as reduced by Option premium paid.
40 bars ...............................................................................................
Answer:Yes, the Manager made an error.
Explanation:
Increasing the revenue of a firm depends on two factors which are price and effective demand. An increase in price without a fall in demand will increase revenue, an increase in demand without a fall in price will equally increase revenue.
However when manipulating price only in order to increase revenue care must be taken to ensure same or higher level of demand for an increase in price which lead to a fall in demand may boomerang for the firm.
E.g
Year. $ Price. Demand. Revenue$
1. 5. 100. 500
2. 6. 80. 480
The above illustrate an increase in price without a rise or maintaining the same level of demand leads fall in revenue.
Answer:
Dividend yield = 5.54%
The expected capital gains yield = 6%
Explanation:
Next Dividend (D1) = $1.44
Growth rate (g) = 6%
Required return (Ke) = 6% + 5.54% = 11.54%
Ke-g = 11.54% - 6% = 5.54%
Price = D1 / (ke / g) = 1.44 / 5.54% = $25.9927 = $26
a. Dividend yield = D1 / Price = $1.44 / $26
Dividend yield = 0.05538
Dividend yield = 0.0554
Dividend yield = 5.54%
b. The expected capital gains yield = Required return (Ke) - Dividend yield
The expected capital gains yield = 11.54% - 5.54%
The expected capital gains yield = 6%
Answer:
no cash was collected during the period
or
cash collections during the year are less than the amount of revenue recognized
Explanation:
For example if we had Accounts receivable beginning balance $ 250,000 and Sales of $ 500,000 are made on accounts then the Total Accounts receivable will be $ 750,000.
But out of the $ 500,000 sales only $300,00 cash is collected and the remaining $ 200,000 is still in the Accounts receivable balance so the ending Accounts receivable balance will be $ 250,000 + $200,000 = $ 450,000 which will be greater than beginning Accounts receivable balance.
So there are two possibilities either cash collections during the year are less than the amount of revenue recognized.
or
no cash was collected during the period.
Similarly it cannot be choice no 1 : collections during the period exceed the amount of revenue recognized
Because if more cash is collected then ending account receivable balance would be less than the beginning account receivable balance.
Choice no 3 is also wrong if cash collections are more than the ending accounts receivable balance would be less
