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2 years ago

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

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4 years ago

Whispering Incorporated factored $164,900 of accounts receivable with Metlock Factors Inc. on a without-recourse basis. Metlock

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Answer:

The journal entries are as follows:

In the books of Whispering:

Cash A/c Dr. $151,708

Due from Metlock Ac Dr. $9,894

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(To record factoring of accounts receivable on without recourse)

Working notes:

Due from Metlock = $164,900 × 6%

= $9,894

Loss on sale of receivable:

= $164,900 × 2%

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In the books of Metlock Factors:

Accounts receivable A/c Dr. $164,900

To Due to Whispering $9,894

To Financing revenue $3,298

To Cash $151,708

(To record the accounts receivable)

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3 years ago

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Explanation:

The options include:

a. To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas

b. to determine the degree to which marketing variables are associated

c. to understand which variables are the cause and which variables are the effect of a phenomenon

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Descriptive research simply refers to a research type that is used in the description of a population that the researcher is studying.

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From the options given, we should note that the descriptive research isn't conducted to understand which variables are the cause and which variables are the effect of a phenomenon.

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3 years ago

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Answer:

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Credit sales to customers are <u>recorded using a Create Invoices window.</u>

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3 years ago

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4 years ago

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