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NemiM [27]
4 years ago
11

You just purchased a three-month BP call option (exercise price $75) and a three-month BP put option (exercise price $75). The c

all premium is $6 and the put premium is $2. Your maximum potential loss from this position is ______________. (Assume each contract is for 100 shares of stock) $200 $600 $800 unlimited
Business
1 answer:
enyata [817]4 years ago
3 0

Answer:

Correct option is C.

<u>Maximum potential loss from this position is $800</u>

Explanation:

Premium paid for call option = $6 * 100 = $600

Premium paid for put option = $2 * 100 = $200

Total cost = $600 + $200 = $800

In case the price of underlying stock falls below $75, call option will be exercised. If the price rises above $75 cal option would be, exercised. In case price stays at $75, nothing would be done. In any case the amount lost cannot exceed the cost of $800 that has been paid for the options.

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When Whitney took over her father's sporting goods store, she evaluated some of her father's vendor relationships. She found tha
kolezko [41]

Answer:

The answer is D. Open communication is key in building lasting relationships whether in business or in personal relationships.

Explanation:

For two companies to maintain a strategic relationship, there must be open communication.  Whitney displayed correct understanding of this ingredient for strategic relationships.

That was why she was open enough to work out a more amicable relationship with Rodney.  She discussed her sales goals and new ideas for the business.  On Rodney's part, he showed no interest.  He was not ready to discuss his own sales goals.

Rodney lost a golden opportunity offered by Whitney by opening up communication.  He should have embraced the chance to bring up his concerns and discuss his goals openly, unless he is hiding something.  He could be deliberately overcharging on price.  These comments remain mere guesses as Rodney failed to open up.

7 0
3 years ago
Select items that affect incentives for people to produce and exchange goods and services.
Finger [1]

The items that affect incentives for people to produce and exchange goods and services are:

liability rules
property rights
contract enforcement

<span>These factors will hinder the exchange of goods and services to people.</span>
8 0
3 years ago
Read 2 more answers
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the
faust18 [17]

Answer and Explanation:

The preparation is presented below:

1. For Direct labor budget

<u> Particulars           1st quarter  2nd quarter   3rd quarter  4th quarter Year </u>

Production Units   10400        9400                11400            12400       43600

direct labor time

per unit (hr)             0.25         0.25                   0.25               0.25         0.25

Total direct labor

hour needed           2600      2350                   2850               3100     10900

direct labor cost

per hour                   12              12                         12                    12          12

Total direct

labor cost              31200         28200               34200           37200 130800

2. For Manufacturing overhead budget

<u>Particulars           1st quarter       2nd quarter   3rd quarter   4th quarter Year</u>

Variable

manufacturing overhead 4420    3995              4845            5270         18530

Fixed manufacturing

overhead               84000            84000            84000        84000      336000

Total manufacturing

overhead            88420               87995              88845          89270 354530

Less: depreciation  -24000        -24000             -24000        -24000 -96000

cash disbursement

for manufacturing overhead 64420  63995  64845    65270    258530

8 0
3 years ago
A small risk of loss in an investment.
iVinArrow [24]

<u>A small risk of loss in an investment:</u>

Investment risk can be characterized as the likelihood or probability of the event of misfortunes comparative with the normal profit for a specific venture. Portrayal: Stating basically, it is a proportion of the degree of vulnerability of accomplishing the profits according to the desires for the financial specialist.

The potential advantage of a "high-chance venture" is that quite possibly you could make an extremely exceptional yield on the speculation too. The five measures incorporate the alpha, beta, R-squared, standard deviation, and Sharpe proportion. Hazard measures can be utilized separately or together to play out a hazard appraisal.

7 0
3 years ago
During the months of January and February, Hancock Corporation sold goods to three customers. The sequence of events was as foll
DedPeter [7]

Answer:

$2,362

Explanation:

The computation of the net sales for the two months is shown below:

= Sale value of goods to S green + Sale value of goods to M Munoz + Sale value of goods to R. Reynolds - sales discounts

= $1,400 + $500 + $490 - $28

= $2,362

The sales discount is

= Sale value of goods to S green × discount percentage

= $1,400 × 2%

= $28

5 0
4 years ago
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