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3 years ago

A customer buys 100 shares of ABC at $65 and buys 1 ABC Jan 65 Put @ $3. At which market price is the position profitable?

Business

1 answer:

yaroslaw [1]3 years ago

8 0

Answer:

The correct answer is $68.

Explanation:

First, both the $ 3 paid in premiums $ 64 paid for the shares must be recovered by the buyer ($ 3 + $ 64 = $ 67). In the process of selling the shares, a profit margin must be obtained, that is, the shares must be sold at a value greater than $ 67. Therefore, the minimum price that meets this condition is $ 68.

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The current value of a property is $60,000. For real estate tax purposes, the property is assessed at 30 percent of its current

Damm [24]

Answer:

Explanation:

Given:

Current value, C = $60000

Assessed value, A = 30 percent of its current value

= 30% × C

Equalisation factor, E = 1.25

The tax rate is $4 per $100 of assessed valuation.

Assessed value, A = 30/100 × 60000

= $18000

Total assessed valuation = assessed value × E

= $18000 × 1.25

= $22500

Tax rate of $4/$100 × assessed valuation

Tax amount = tax rate × assessed valuation

= ($4 × $22500)/$100

= $900

4 0

3 years ago

The total amount of carbon fixed into organic matter through photosynthesis (or chemosynthesis) in a given unit of time is known

lesya692 [45]

The total amount of carbon fixed into organic matter through photosynthesis (or chemosynthesis) in a given unit of time is known as Gross primary production.

<h3>What is Gross primary productivity?</h3>

Gross productivity generally is the rate of energy capture.

Net efficiency is lower: its net efficiency is balanced for the vitality utilized by the living beings in respiration/metabolism, so it reflects the sum of vitality put away as biomass.

The whole vitality settled by plants (autotrophs) in a community through photosynthesis is alluded to as net essential efficiency (GPP).

Since all the vitality settled by the plant is changed over into sugar, it is hypothetically conceivable to decide a plant’s vitality take-up by measuring the sum of sugar delivered.

To know more about Gross primary productivity visit:

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4 0

2 years ago

Simon Company’s year-end balance sheets follow.At December 31 2017 2016 2015Assets Cash $ 36,335 $ 42,472 $ 42,524 Accounts rece

mina [271]

Answer:

(1) Debt Ratio in 2017 = 44.57%; Debt Ratio in 2016 = 39.33%; Equity Ratio in 2017 = 55.43%; and Equity Ratio in 2016 = 60.67%.

(2) Debt-To-Equity Ratio in 2017 = 80.42%; and Debt-To-Equity Ratio in 2016 = 64.83%.

(3) Times Interest Earned in 2017 = 4.71 times; and Times Interest Earned in 2016 = 4.22 times.

Explanation:

(1) Calculation of debt and equity ratios

Debt ratio is a ratio that is used to measure the ability of a company to pay off its liabilities with its assets. Debt ratio can be calculated using the following formula:

Debt Ratio = Total Debt / Total Assets

We can then calculate as follows:

Total debt = Accounts payable + Long-term notes payable secured by mortgages on plant assets

Total debt in 2017 = $159,605 + $120,505 = $280,110

Total debt in 2016 = $89,723 + $123,354 = $213,077

Total assets in 2017 = $628,417

Total assets in 2016 = $541,739

Debt Ratio in 2017 = $280,110 / $628,417 = 0.4457, or 44.57%

Debt Ratio in 2016 = $213,077 / $541,739 = 0.3933, or 39.33%

Equity ratio is a ratio that is used to measure the amount of assets of a company that are financed by the investments of the owners of the company. Equity ratio can be calculated using the following formula:

Equity Ratio = Total Equity / Total Assets

We can then calculate as follows:

Total equity = Common stock, $10 par value + Retained earnings

Total equity in 2017 = $162,500 + $185,807 = $348,307

Total equity in 2016 = $162,500 + $166,162 = $328,662

Equity Ratio in 2017 = 0.5543, or 55.43%

Equity Ratio in 2016 = 0.6067, or 60.67%

(2) Calculation of debt-to-equity ratio.

The debt-equity ratio provides the proportion of financing of a company that is contributed by creditors and investors. Debt-equity ratio can be calculated using the following formula:

Debt-To-Equity Ratio = Total Debt / Total Equity

Using the data in part (1) above, we can then calculate as follows:

Debt-To-Equity Ratio in 2017 = $280,110 / $348,307 = 0.8042, or 80.42%

Debt-To-Equity Ratio in 2016 = $213,077 / $328,662 = 0.6483, or 64.83%

(3) Calculation of times interest earned

The times interest earned ratio is a ratio that is used to determine the proportionate amount of income that that is required to cover interest expenses. The times interest earned ratio can be calculated using the following formula:

Times Interest Earned = Earnings before interest and tax (EBIT) / Interest expenses

We can then calculate as follows:

EBIT = Sales - Cost of goods sold - Other operating expenses

EBIT in 2017 = $816,942 - $498,335 - $253,252 = $65,355

EBIT in 2016 = $644,669 - $419,035 - $163,101 = $62,533

Interest expenses in 2017 = $13,888

Interest expenses in 2016 = $14,827

Times Interest Earned in 2017 = $65,355 / $13,888 = 4.71 times

Times Interest Earned in 2016 = $62,533 / $14,827 = 4.22 times

7 0

3 years ago

Cho biết hàm cầu đối với một loại hàng hóa nhất định là ( USD / đơn vị sản phẩm ) P = -0,21. Q ^ ( 2 ) -0,84.Q+ 50 Thặng dư của

n200080 [17]

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5 0

3 years ago

SartainC orporation is planning its annual budget and has the following beginning and ending inventory levels planned for the ye

torisob [31]

Answer: c. 530,000 grams

Explanation:

Finished goods that should be produced in the year;

= Units to be sold + ending inventory - beginning inventory

= 170,000 + 32,000 - 22,000

= 180,000 units of finished goods.

Each unit of finished good requires 3 grams of raw material;

= 180,000 * 3

= 540,000 grams

Raw materials to be purchased;

= Raw materials needed + ending inventory - beginning inventory

= 540,000 + 42,000 - 52,000

= 530,000 grams

7 0

3 years ago