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BigorU [14]
3 years ago
12

"A customer holds 10 ABC Jan 60 Call contracts. ABC Corporation is paying a 20% stock dividend. On the ex date, the contracts wi

ll show as:"
Business
1 answer:
Viefleur [7K]3 years ago
3 0

Answer:

On the ex date, the contracts will show as:

10 ABC Jan 60 Calls

The customer must exercise call contracts to buy the stock prior to the Ex-Date

Explanation:

The reason is that if the customer is not exercising the call contracts then it will not be able to receive the stock dividend. Furthermore, the OCC doesn't adjust the contract because of the dividend announcement prior to exercise of contract. This means it will only adjust if the contract is exercised.

The settlement of the exercise takes around 2 business working days, hence the customer must exercise the option 2 days earlier to the ex-date.

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A small foundry agrees to pay $220,000 two years from now to a supplier for a given amount of coking coal. The foundry plans to
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Answer:

A) $24,602

Explanation:

We can solve this question by finding the periodic deposits needed by using the formula:

FV=PMT*\frac{(1+i)^n-1}{i}

where:

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i = effective  interest rate per period = 0.0331

n= number of deposits = 8

However, since the interest is compounded monthly, let's also  calculate the effective interest rate

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PMT = $ 24,482.5

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Therefore,  $ $24,602  must be deposited every three months

3 0
3 years ago
In 1 to 2 paragraphs, analyze how a person's ethics or values might affect his performance on the job.
defon

Answer:

Explanation:

This question puts together two different perspectives based on different goals and metrics: economics and ethics. In economics, self interest is the driving force and productivity is one of the metrics used by managers and shareholders in measuring their profit making. In ethics, doing good for people and creating social value is the goal. The results cannot be measured anymore in units of productivity.

Peter Drucker in his famous book "Management: tasks, responsibilities, practices" says : "To know what a business is we have to start with its purpose. Its purpose must lie outside of the business itself. In fact, it must lie in society since business enterprise is an organ of society. There is only one valid definition of business purpose: to create a customer." That means to create value for society and not to maximize the profit.

I shall add a recent message sent by Richard Branson - the creator of Virgin Group - in his book "Screw business as usual" : Doing good can help improve your prospects, your profits and your business; and it can change the world." But with a condition: in that firm to exist an organizational culture based on positive values and not on profit maximization. In conclusion, ethics may impact positively on performance if and only if there is a managerial philosophy based on ethics and not on profit maximization, and on value creation. In this well-defined context profit and profitability are consequences and not driving forces of the whole business.

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