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Yuliya22 [10]
2 years ago
12

You bought a put with a strike price of $25. the current stock price is $23. what is the current payoff value of this option?

Business
1 answer:
kirill [66]2 years ago
4 0

$2 is the current payoff value of this option.

First calculate the price of the option contract: 100 shares x $1 = $100. The security price is now above breakeven, so the call option is "in the money". This is because the investor makes a profit by buying $60 per share at a strike price of only $55 per share.

The idea behind a call option is that if the current stock price exceeds the strike price, the option holder can sell the stock for a profit. You can calculate your profit by subtracting the strike price and the cost of the call option from the current market price of the underlying asset.

Buying a $5 put option gives you the right to sell 100 shares at $100 per share. If ABC Company's stock price drops to $80, he exercises his option to sell 100 shares at $100 per share, for a total profit of $1,500.

Learn more about stock prices here brainly.com/question/1166179

#SPJ4

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Suppose that in a given month $40 million is deposited into the banking system while $50 million is withdrawn. Assume that the r
vladimir1956 [14]

Answer: Money Supply Decrease of $50 million.

Explanation:

$40 million was deposited while $50 million was withdrawn.

The net change in the banking system would therefore be,

= 40 - 50

= -$10 million

($10 million ) means that more money left than came in.

The money supply can be calculated as the net change multiplied by the money multiplier.

The Money Multiplier is denoted as 1/reserve requirement.

Change in Money Supply is,

= -10 million * 1/20%

= -$50 million

Going by the negative number it means that Money Supply reduces by $50 million.

8 0
3 years ago
What will you need to change to make the message appropriate for both a subordinate and other subordinates? Make the message eve
bezimeni [28]

Answer: The correct answer is "Focus on congratulating the team using each individual’s name and use a more formal tone.".

Explanation: In order for the message to be more appropriate both for a subordinate and for other subordinates, the team and each individual subject should be congratulated with their own name so that they feel part of it and feel that their work is important for the team always in a formal tone that maintains respect among all.

4 0
3 years ago
The 2016 balance sheet of Whole Foods Market reports operating assets of $5,489 million, operating liabilities of $2,066 million
frosja888 [35]

Answer:

Correct option is E.

Explanation:

There is not enough information to calculate the amount.

Net operating asset= Operating Assets  - Operating Liabilities

=$5489 Million - $2066 Million

=$3423 Million

Hence Average net operating assets can't be calculated by given information.

8 0
3 years ago
A cost object is anything for which management desires a separate tracking of costs, while a cost driver is the factor that caus
blondinia [14]

Answer:

The correct answer is True.

Explanation:

This statement, a cost object is anything for which management desires a separate tracking of costs, while a cost driver is the factor that causes the cost object to increase or decrease, is correct.

These terms are mostly used in activity based costing (ABC) system.

Examples of Cost Object are material procurement costs, quality control costs, materal handling costs, line set up costs e.t.c.

Example of Cost drivers are number of purchase orders, number of inspections, numbers of set-ups e.t.c.

6 0
3 years ago
When the tasks and authority associated with various positions in the organization are clearly specified, it creates a scenario
nydimaria [60]

Answer:

A) employees are held strictly accountable for their actions.

Explanation:

When tasks are given specifically as well as authority to various positions, persons holding those positions will be held accountable for inquiries or issues that may arise from those specific positions. For example, a bread factory has a unit headed my John who is in charge of creative the bread tag, if the tag is done wrongly, or is being delayed, the management instantly knows who to question.

6 0
3 years ago
Read 2 more answers
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