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butalik [34]
3 years ago
9

On Monday, the seller offers to sell his vacant lot to the buyer for $42,000. On Tuesday, the buyer counteroffers to buy for $40

,500. On Friday, the buyer learns that several other prospects may be making offers on the property, so he withdraws the counteroffer and agrees to the original asking price of $42,000. Under these conditions, there is
Business
1 answer:
Anastasy [175]3 years ago
4 0

Answer:

b. not a valid agreement because the buyer's counteroffer was a rejection of the seller's offer, and once rejected, an offer cannot be accepted later.

Explanation:

Since in the question it is mentioned that the vacant lot is offered for $42,000 but the buyer counteroffers to buy $40,500 but afterward he agreed to the original price of $42,000

So this situation represents that it is not a valid agreement as the counteroffer made by the buyer was rejected by the seller and once it is rejected then the same could not be accepted

Therefore the correct option is b.  

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Interest on cash balance is entry required or not
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3 years ago
Theo is depositing $1,300 today in an account with an expected rate of return of 8.1 percent. If he deposits an additional $3,20
SOVA2 [1]

Answer:

$15,699.54

Explanation:

The computation of the account balance after 10 years from today is shown below:

= Future value of amount deposited today × (1 + interest rate)^number of years +   Future value of amount deposited two years × (1 + interest rate)^number of years + Future value of amount deposited three years × (1 + interest rate)^number of years

= $1,300 × (1 + 8.1%)^10 + $3,200 × (1 + 8.1%)^8 + $4,000 × (1 + 8.1%)^7

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= $15,699.54

3 0
3 years ago
A stock is selling at $40, a 3-month put at $50 is selling for $11, a 3-month call at $50 is selling for $1, and the risk-free r
aalyn [17]

Answer:

$0.745

Explanation:

GIven that

Current stock price  S_o = $40

strike price  X = $50

time to expiry of option = 3 - month

put price option P _o = $11

call price option C_o = $1

and the risk-free rate r = 6%

The amount that can be made on the arbitrage can be evaluated as a function of the Put-call parity.

i.e For parity ;

C_o + (X \times e^{-rt} ) = P_o + S_o

1 + (50 \times e^{-(0.06 \times 0.25} ) = 11 + 40

1 + (50 \times 0.9851 ) = 51

1 + (49.255 ) = 51

50.255 = 51

the difference in both values above illustrates that there is no  parity taking place and the arbitrage estimation here = 51 - 50.255 = $0.745

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