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1 year ago

A customer who is long 1 oex may 315 call exercises the contract on this day. the customer will receive:________

1 answer:

Nutka1998 [239]1 year ago

3 0

A customer who is long 1 OEX may 315 call exercises the contract on this day. the customer will receive $58.00. Option A

This is further explained below.

<h3>What is called exercises?</h3>

Generally, If you possess a call option and the current stock price is greater than the strike price, it makes financial sense for you to execute your call option at this time.

You are able to make a profit by purchasing the stock at a lower price so that you can either instantly resell it to the market at a higher price or keep it for the long term.

In conclusion, On this day, a client who is long 1 OEX and has a 315 call option on the contract may execute it. The total amount that the client will get is $58.00. Alternative A

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A manufacturer of industrial sales has production capacity of 1,000 units per day. Currently, the firm sells production capacity

TiliK225 [7]

Answer:

The production capacity the manufacturer should reserve for the last day = 206.00 units.

Explanation:

Normal production = 1000 X $ 10

Normal production = $ 10,000

Spot production = 1,000 X $ 15

Spot production = $ 15,000

p* = 15,000 - 10,000 / 15,000

p* = 0.33

Q = norminv(0.33,250,100)

The production capacity the manufacturer should reserve for the last day = 206.00 units

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3 years ago

Windsor, Inc. just began business and made the following four inventory purchases in June:

alisha [4.7K]

Answer:

c. the average cost method.

Explanation:

Windsor INC. purchased inventory during the month of June as follows:

June 1 129 units at $890

June 10 172 units at $1340

June 15 172 units at $1440

June 28 129 units at $ 1140

and at the end of the period, there are 180 units on hand.

In order to get highest gross profit the closing sock should be the highest, accordingly the value of inventory at hand should as as follows under different method explain below:

Under FIFO method the inventory first enter into the enterprise is available for sale at first so the inventory of 180 units at end should be values at the last price mentioned in the question i.e $1140, therefore the value amounts to $1140*180 units=$205200

Under LIFO method, likewise the last entered inventory will be available for sale and the inventory at the end of period will be valued at the price at which the inventory first bought i.e $890, therefore the value amounts to 180 units*$890=$160200

Under Average cost method the effect of differential price is distributed over the quantity bough during a period so that the company remains in ineffective condition during the period from the price change

Average cost per unit= (129*$890 +172*$1340+ 172*$1440+129*$1140)/602 units

=$1229.29

and for the 180 units the value amounts to 180*$122.29=$221271.429

so, as per explanation given above, it is certain that the highest value will be in average cost method.

The correct option is - c. the average cost method.

5 0

3 years ago

Which of the following characteristics apply to taxable fringe benefits? (Check all that apply.)

EleoNora [17]

Answer:

Employers treat the taxable fringe benefits the same as cash compensation.

Explanation:

Taxable fringe benefits "are included in gross income and subject to federal withholding, social security, and Medicare taxes".

Fringe benefits are "perks and additions to normal compensation that companies give their employees, such as life insurance, tuition assistance, or employee discounts".

* The cost of the taxable fringe benefit is deductible to the employer, not the value of the benefit to the employee.

FALSE, the taxable fringe benefit is not deductible from the employer.

* Employers treat the taxable fringe benefits the same as cash compensation.

TRUE, and as we can see on the definition above the taxable fringe benefits are treated as a compensation that comapnies giv their employees.

7 0

3 years ago

"Christie and Jergens formed a partnership with capital contributions of $300,000 and $400,000, respectively. Their partnership

Katen [24]

Answer:

The Christie and Jergens's respective shares are $92,500 and $42,500.

Explanation:

For computing the Christie and Jergens's respective shares, first, we have to compute the remaining income which is to be shared between these two partners. The computation is shown below:

= Net income - salary - interest on total capital

= $135,000 - $60,000 - 10% × ($300,000 + $400,000)

= $135,000 - $60,000 - $70,000

= $5,000

So, the remaining income would be divided equally between the partners

Now

Christie shares = Salary + interest on capital + remaining income

= $60,000 + ($300,000 × $10%) + $2,500

= $60,000 + $30,000 + $2,500

= $92,500

And, the Jergens shares = interest on capital + remaining income

= ($400,000 × $10%) + $2,500

= $40,000 + $2,500

= $42,500

3 0

3 years ago

An authorization to start a business issued by the local government is a _____. fringe benefit zoning law business license liabi

Rina8888 [55]

An authorization to start a business issued by the local government is a business license. A business license allows a person to run a business legally. The license is used for tax purposes with the government and so the government can control and regulate the business on the legal side. If you do not have a business license, then you are a sole proprietor and running the business for tax purposes from your social security number.

5 0

2 years ago