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8 months ago

What is an option in stocks

1 answer:

6 0

A contract known as an option grants the buyer the right, but not the duty, to purchase or sell an underlying asset (such as a stock or index) at a given price on or before a particular date (listed options are all for 100 shares of the particular underlying asset).

<h3>What is an option? Explain.</h3>

An option is a contract that grants the buyer the right, but not the responsibility, to buy the underlying asset (in the case of a call) or sell it (in the case of a put) at a certain price on or before a specific date.

Options are used by people for revenue, speculation, and risk hedging.

Because they draw their value from an underlying asset, options are classified as derivatives.

A stock option contract normally entails 100 shares of the underlying stock, but other underlying assets, such as bonds, currencies, or commodities, are also acceptable.

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Wildhorse Construction Company had a contract starting April 2021, to construct a $24900000 building that is expected to be comp

jek_recluse [69]

Answer:

The construction in process amount reported at December 2021 is $13,695,000

Explanation:

In this question, we are asked to state the amount the company will report construction in the process of.

Firstly, we calculate the profit = Total contract price - Expected costs of contract = $24,900,000-$22,900,000 = $2,000,000

The profit in percentage of cost is; 2,000,000/22,900,000 = 8.73%

The costs incurred in 2021 is $12,595,000

The proportionate profit = 12,595,000 * 8.73 = $1,100,000

The construction in process at December 2021 = Cost incurred + Proportionate profit = 12,595,000 + 1,100,000 = $13,695,000

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2 years ago

Which of the following best describes what a manager does?

Bingel [31]

Answer:

D works for a company and produces resources to make a prpduct

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2 years ago

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In responsibility accounting, unit managers are evaluated only on things that they can:________

hammer [34]

Answer: have control over

Explanation:

Responsibility accounting is a system of accounting whereby responsibility centers are identified and the performance reports of such responsibility centers are prepared and analysed.

Responsibility accounting has to.do with the internal accounting for the responsibility center that the company has and their budgeting.

In responsibility accounting, unit managers are evaluated only on things that they can control or have control over.

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Answer: Primary activity.

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2 years ago

Which descriptions about simple interest and yearly compounded interest are true? Check all that apply.

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Descriptions about simple interest and yearly compounded interest are true are :

Only compound interest has an exponent in its formula.

Simple interest is only earned on the original principal investment.

Compound interest is earned on principal and interest.

<h3>What is simple interest and compound interest?</h3>

Simple interest is the one that the calculation is based on principal, or of a loan.

Compound interest is base on principal amount as well as the accumulated interest of previous periods.

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1 year ago