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posledela
3 years ago
8

You purchase one IBM July 120 call contract for a premium of $5. You hold the option until the expiration date when IBM stock se

lls for $123 per share. You will realize a ______ on the investment. $200 profit $200 loss $300 profit $300 loss
Business
2 answers:
QveST [7]3 years ago
8 0

Answer:

$200 loss

Explanation:

Long call profit = Max [0, ($123 - $120)(100)] - $500 = -$200.

Ivahew [28]3 years ago
4 0

Answer:

$200 loss

Explanation:

A call option allows the investor to purchase a security at a fixed price in a future date (called the expiration date). In this case, the call option allowed you to purchase 100 IBM shares at $120 per share. In order to determine the profit r loss resulting from this investment, you have to consider the price you paid for the call option which is $5.

long call profit = Max [0, ($future price - $call price)(100 shares)] - (call price x 100 shares) = Max [0, ($123 - $120)(100)] - $500 = -$200 or $200 loss.

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On December 31, 2020, the Bennett Company had 100,000 shares of common stock issued and outstanding. On July 1, 2021, the compan
matrenka [14]

Answer:

$5.31

Explanation:

Earnings per share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks Outstanding

<em>where,</em>

<u>Earnings Attributable to Holders of Common Stock is :</u>

Net Income                                                                       $650,000

Less Preference Stock dividend                                       ($71,000)

Earnings Attributable to Holders of Common Stock      $579,000

<em>and</em>

<u>Weighted Average Number of Common Stocks Outstanding :</u>

Common Stocks at Beginning outstanding                                  100,000

Stocks Sold at Weighted Average (18,000 / 2)                                9,000

Weighted Average Number of Common Stocks Outstanding    109,000

therefore,

Earnings per share = $579,000 ÷  109,000

                                = $5.31

The 2021 basic earnings per share is $5.31.

4 0
2 years ago
Investing in stocks is like gambling when:
bearhunter [10]
If so maybe see hope help
6 0
3 years ago
g At the beginning of the month, the Forming Department of Martin Manufacturing had 22,000 units in inventory, 30% complete as t
Liula [17]

Answer:

62,000 units

Explanation:

Calculation to determine how many units did the Forming Department start and complete in the current month

Total units completed and transferred 84,000 units

Less Inventory at the beginning of this month 22,000 units

Units Forming Department started and completed in the current month 62,000 units

(84,000 units-22,000 units)

Therefore The number of units that the Forming Department started and completed in the current month is 62,000 units

7 0
3 years ago
The way Professor Quinn choose to handle this situation illustrates the difficulty of dealing with ethics violations. Listed as
miv72 [106K]

Answer:

The correct answer is:

Establishing a code of ethics

Referring ethical dilemmas to an ethics committee

Providing support for whistleblowers

Explanation:

The ethics of the company tries to apply ethical principles in decision-making and concrete actions, and provides tools that raise the ethical level of companies.

Business ethics includes the moral principles and norms that guide behavior in the business world. In fact, there are people who think that their personal values ​​and principles have nothing to do with those presented in their work environment. This is a mistake, when an ethical person works in a company where ethics remains, this person will have a place where he can develop his full potential and his degree of loyalty will be unimaginable.

Companies when they want to define their code of ethics, integrate a series of values ​​such as honesty, loyalty, integrity, innovation, quality, respect for the individual, among others.

4 0
3 years ago
Vertical communication occurs when scott, divisional manager of production, discusses business issues with susan, divisional man
liberstina [14]
<span>False. Communication up and down the corporate hierarchy is often called vertical communication. Communication among employees at the same level in the hierarchy, or sideways, is called horizontal communication.</span>
8 0
3 years ago
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