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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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Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $15,000 cash and inventory with a fair valu
Naya [18.7K]

Answer:

$2,000 capital loss

Explanation:

Randolph recognizes a $2,000 capital loss because RD distributes only cash and inventory and the adjusted bases of the property distributed is less than his basis in RD.

7 0
3 years ago
Nonprofit organizations differ from profit organizations in that nonprofit organizations: Group of answer choices
Schach [20]

Answer:

The correct answer is <em>must often target those who are apathetic about or strongly opposed to receiving their services. </em>

Explanation:

A nonprofit organization is formed for the public good. Nonprofit organizations are usually formed for religious, charitable or educational purposes.

Instead, for-profit organizations can be formed to carry out a variety of legal businesses. The main reason for forming a profit organization is to make profits for the owners of the company.

8 0
3 years ago
FAB Corporation will need 200,000 Canadian dollars (C$) in 90 days to cover a payable position. Currently, a 90-day call option
fgiga [73]

Answer:

$144,000

Explanation:

Calculation to determine net amount paid, assuming FAB wishes to minimize its cost

Net amount: ($.71 + $.01) x 200,000

Net amount = $144,000.

Therefore net amount paid, assuming FAB wishes to minimize its cost is $144000

7 0
3 years ago
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.9 hours
topjm [15]

Answer:

-$30,250 favorable

Explanation:

labor efficiency variance = (standard quantity - actual quantity) x standard labor cost

  • actual quantity = 7,700 hours
  • standard quantity = 9.9 hours x 1,000 units = 9,900
  • standard labor cost = $13.70

labor efficiency variance = (7,700 - 9,900) x $13.70 = -$30,250 favorable variance

the variance is favorable, because less hours were actually used than forecasted

5 0
2 years ago
Which one of the following is not one of the four most common ways people can save money in banks?
marysya [2.9K]

Answer:

Fractional Reserves

Explanation:

Banks are required to hold money to lend out. If you deposit $100 into your account that is $100 for the bank to lend that money out to ones who need it.

6 0
3 years ago
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