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Yuliya22 [10]
1 year 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]1 year 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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Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at Janu
lesantik [10]

Answer:

Compensation expense of $510,000 will be recorded each year 2021-2024

Explanation:

Stock option gives a right to employee to buy an amount of company stock at a given price in specified time period. It is charged as expense according to the fair value of the stock option every year until exercise-able date.

Compensation expense of $510,000 will be recorded each year 2021-2024

All the working is made in an MS Excel file and answer is made accordingly. Please find it.

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7 0
3 years ago
Suppose this monopolist can price discriminate across its customers and sets 2 prices in the market. Let P M represent the stand
Orlov [11]

Answer:

hello your question is incomplete attached below is the missing part

answer: Pd = 1658 , Qd = 42

Explanation:

The monopolist will choose a discount price of ( Pd ) = 1658 and sell 42 units of the good in the discount market

since the standard price is at $1800 and the Qm ( standard monopoly quantity) is at 200 for the Monopoly to be profitable the amount of good to be sold to customers with reservation prices greater than or equal to standard price should be greater than the good offered at discount price and also the discount price after using a coupon should be lower than the standard price (Pm)

5 0
3 years ago
Test the following sentences to see if headwords and verbs agree:
Maru [420]

Answer:

a). The statement on the income tax form about the deduction for children and other dependents was simply unreadable.

b). The type of career that many graduates are hoping to pursue pay high salaries and provide long vacations.

c). Apparently, the use of robots in factories has been responsible for a great deal of worker dissatisfaction.

d). The problems associated with government deregulation have been responsible for the economic plight of several major airlines in recent years.

e). The impact of computers on our lives is comparable to the impact of the industrial revolution.

f). The amount of money and time I spend on computer games <u>is</u> more than I can afford.

Explanation:

Subject-verb agreement is described as the grammatical rule according to which the subject, as well as, the verb must agree with one another in number. As per the rules, if the subject(noun or noun phrase) is singular, it will take a singular verb while if the subject is plural(noun or noun phrase), it will carry a plural verb.

According to this rule, <u>the first and third sentence fails to follow this agreement</u>. The first sentence inadequately carries a plural verb 'were' with the singular noun ('The statement') and similarly, the third sentence wrongly employs plural verb 'have' with the singular noun 'the use.' The other sentences are grammatically appropriate as the verbs and noun phrases agree in number.

3 0
3 years ago
_____________ are sunk costs because the company will have to pay the cost no matter production or other variables in operations
Lina20 [59]

Answer:

E. Fixed Costs

Explanation:

Here are the options to this question :

A. Variable Costs

B. Labor Costs

C. Total Costs

D. Raw material Costs

E. Fixed Costs

Sunk costs are costs that have already been incurred and cannot be recovered. They should not be considered when making future economic decisions.

Fixed cost is cost that do not vary with production. e.g. rent

Most companies pay rent per year. if due to unforeseen contingencies, sales and profit of the company declines and the company decides to shut down production, the company has already paid for rent, this amount cannot be recovered even though the company would not be using the space for sometime. So, rent is an example of sunk cost

6 0
3 years ago
Samsung has products for each and every customer segment. This pertains to ________ targeting strategy. *
aleksklad [387]
The I believe the answer is undifferentiated marketing
6 0
3 years ago
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