Answer: 2.09
Explanation:
Given the following ;
Strike price (K) = $50
Price (c) = $6
Rate (r) = 6% = 0.06
Stock price (So) = $51
Time (T) = 1
Recall, relation for a put-call parity(p) is given by:
p + So = c + Ke^-(rT)
p = c + [Ke^-(rT)] - So
p = 6 + [50e^-(0.06 × 1)] - 51
p = 6 + [50×e^-0.06] - 51
p = 6 + (50 × 0.9417645) - 51
p = 6 + 47.0882267 - 51
p = 53.0882267 - 51
p = 2.0882267
p = 2.09
Answer: Higher price and produce less output.
Explanation:
A monopolist is the only producer of a good in the market or at least wields significant market power. As a result, they can set their own prices without regard for how competitors would react.
This would lead to a situation where the monopoly does not have to be efficient and so will produce less goods than a perfect competition would and in order to make more profit - and because of less efficiency meaning higher costs - they will charge a higher price for output.
Answer:
$5,000 realized, but not recognized loss
Explanation:
Based on the above information given we were told that two years earlier She purchased some shares for the amount of $15,000 in which in order for her to offset few of her gains she sells those 100 shares of Bear Corporation for the amount of $10,000 making her to REALIZED the amount of $5,000 ($15,000-$10,000) reason been that a loss will be realized instantly in a situation were an assets is sold out for a loss.
Therefore the tax consequences to Andrea this year will be the amount of $5,000 Realized, but not recognized loss.
Answer:
controllable margin for the year is $180,000.
Explanation:
The Controllable Margin is the Profit that is controllable by the divisional manager.
<u>Calculation of Controllable Margin : </u>
Contribution Margin $360,000
Less Controllable fixed costs ($180,000)
Division Controllable Margin $180,000
Answer:
b. Unearned Rent
Explanation:
Shareholders Equity is the residual amount of Assets after deducting the Liabilities.
The Unearned Rent is a Liability and is not found in the Shareholders Equity Section.
Liabilities are Present obligations of an entity that arise as a result of past events, the settlement of which will result in out flow of economic benefits from the entity.
