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1 year 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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Select the correct answer

Luda [366]

Answer:

option. C. $50

Explanation:

Your loss is limited to $50 if you notify your financial institution within two business days after learning of the theft.

7 0

2 years ago

You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $28,000, $32,000, $66,000,

larisa86 [58]

Answer:

$202,137.90

Explanation:

Year Annual payment Discount factor Present value

1 $28,000 0.965250965 $27,027.03

2 $32,000 0.931709426 $29,814.70

3 $66,000 0.899333423 $59,356.01

4 $99,000 0.868082454 $85,940.16

Total present value $202,137.90

The discount factor should be computed by

= 1 ÷ (1 + interest rate)^years

where,

rate is 3.6%

Year = 0,1,2,3,4 and so on

6 0

3 years ago

Sue bought a copy of her credit report, and found incorrect information in it. she can:________

Helen [10]

Sue bought a copy of her credit report and found incorrect information in it. she can request that the credit bureau correct her credit report

A credit report is a statement that provides information about your credit activity and current credit situation, such as: B. Loan payment history and credit account status. Sep 1, 2020

Loan repayments, available credit, monthly debt amounts, and other types of information help prospective lenders determine whether credit risk is high or low.

credit report is a record of a borrower's responsible debt repayment. A credit report is a record of a borrower's credit history from various sources such as banks, credit card companies, collection agencies, and governments.

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8 0

1 year ago

he Wood Valley Dairy makes cheese to supply to stores in its area. The dairy can make 485 pounds of cheese per day (358 days per

Kaylis [27]

Answer :

Minimum total annual cost = $3,321.26

Explanation :

The computation of the minimum total annual cost is shown below:

As per the data given in the question,

Annual demand (D) = 67 × 358 days = 23,986

Setup cost (C) = $290

Production rate (R) = 358 days × 485 = 173,630

Holding cost(H) = $0.92

Economic production quantity(Q) = sqrt((2 × D × C) ÷ H × (1-(D ÷ R)))

= sqrt(((2 × 23,986 × $290) ÷ $0.92 × (1 -(23,986 ÷ 173,630)))

= 4,188.7

= 4,189

Minimum total annual cost is

= (Q ÷ 2) × (1 - D ÷ R) × H + (D ÷ Q) × C

=4,189 ÷ 2 × (1 - (23,986 ÷ 173,630) × $0.92+ (23,986 ÷ 4,189) × 290

= $3,321.26

6 0

3 years ago

After the amount due on a sale of $30,400, terms 2/10, n/eom, is received from a customer within the discount period, the seller

Elenna [48]

Answer:

a. The amount refund owed to the customer is : $29,792

b. To record the refund and the return of merchandise:

Dr Sales returned and Allowances $30,400

Cr Sales Discounts $608

Cr Cash $29,792

(to record the refund of $30,400 sales with sales discount of $608 made)

Dr Merchandise Inventory $13,060

Cr Cost of Merchandise sold $13,060

(to record the impact of the $30,400 sales refund on cost of merchandise sold and merchandise inventory)

Explanation:

- Further explanation for sell discounts calculation:

As the terms is 2/10, total discount had been given as calculated below:

$30,400 x 2% = $608.

3 0

3 years ago