Answer:
Explanation:
At $0.86
$0.86<$0.89
The buyer of the call option will not exercise the option. Net profit will be equal to the premium paid per unit = $0.02/unit.
At $0.87
$0.87<$0.89
The buyer of the call option will still not exercise the option. Therefore, net profit will be equal to the premium paid per unit = $0.02 unit. So net profit = $0.02/unit
At $0.88
$0.88<$0.89
The buyer of the call option will still not exercise the option. Net profit will be equal to the premium paid per unit = $0.02 unit. So net profit = $0.02/unit
At $0.89
$0.89=$0.89
The buyer of the call option will still not exercise the option. Net profit will be equal to the premium paid per unit = $0.02/unit.
At $0.91
The buyer will exercise the option and the net loss to Bulldog Inc will be 0.02/unit ($0.91-$0.89)
So there is no profit and no loss because this is offset by the call premium
Profit = -0.02 (loss on exercise) + 0.02 (call premium) = $0/unit
At $0.92
The buyer will exercise the option. The net loss to Bulldog Inc will be $0.03/unit ($0.92-$0.89)
Loss= -0.03 (loss on exercise) + 0.02 (call premium) = -$0.01/unit
These undistributed profits are refereed to as RETAINED EARNINGS. They are also called accumulated profits, undivided profits and earned surplus. The undistributed profits form a part of a business' equity and they are owned by the shareholders.
Answer:
$700
Explanation:
to calculate the amount of state income tax refund that must be included in the 2019 tax return we can use the following equation:
state income tax refund included in gross income = itemized deduction - standard deduction = $24,700 - $24,000 = $700
the rest of the refund = $1,800 - $700 = $1,100, should not be included in the 2019 gross income
Answer:
The correct answers are numbers (I), (II), (III), and (IV).
Explanation:
Business cycles are the ups and downs of the overall economy. Those fluctuations are caused by "shocks" that are the result of <em>the slow periods coming after irregular innovations, increases or decreases in productivity levels, increase or decrease of money supply, </em>and <em>major political events like war.</em>
