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mina [271]
3 years ago
10

Six-month call options with strike prices of $35 and $40 cost $6 and $4, respectively. You plan to create a bull spread call (Bu

ying a call spread) by trading a total of 200 options?
Business
1 answer:
trasher [3.6K]3 years ago
5 0

Answer:

A bull spread is created when you buy at a low strike price call and sell at a high strike price call.

In this case, you would need to buy a call option with a strike price of $35 and sell a call option with a strike price of $40. The cost of the transaction would be = purchase price - selling price = ($6 x 100) - ($4 x 100) = $600 - $400 = $200

If the strike price is equal or higher than $40, you will be able to earn $500, which is the difference between the low strike price and the high strike price times 100 stocks.

So your maximum gain can be = maximum revenue - cost = $500 - $200 = $300

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A manufacturing company has budgeted production at 940 units for the month. Each unit requires 3.5
USPshnik [31]

The total cost of direct labor for the month will be $ 49350, if the company has budgeted production at 940 units for the month, each unit requires 3.5 hours of labor to produce and the average labor rate is $15 per hour.

Explanation:

The given is,

          Total units produced in a month

                                 = 940 unit per month

          Time for each unit

                                 = 3.5 unit per hour

               Labor rate = $15 per hour

Step:1

           Total Labor working hours for 940 units,

                                  = Total units × Time for each unit

                                  = 940 × 3.5

                                  = 3290 hours

Step:2

           Labor cost total working hours

                                 = Total Labor working hours × Labor cost per hour

                                 = 3290 × 15

                                 = $ 49350

Result:

         The total cost of direct labor for the month will be $ 49350, if the company has budgeted production at 940 units for the month, each unit requires 3.5 hours of labor to produce and the average labor rate is $15 per hour.

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2 years ago
Edwards Enterprises follows a moderate current asset investment policy, but it is now considering a change, perhaps to a restric
VashaNatasha [74]

Answer:

Please see attachment

Explanation:

Please see attachment

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2 years ago
The fiscal policy that involves reducing government spending, reducing transfer payments, or raising taxes to decrease aggregate
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The correct option is C.
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Other things the same, a decrease in the price level makes consumers feela.more wealthy, so the quantity of goods and services d
djyliett [7]

Answer:

<h2>The answer in this case would be option a. or feel more wealthy, so the quantity of goods and services demanded rises. </h2>

Explanation:

  • As a common consumer psychology,as the price of any good or service decreases,any rational consumer or buyer feels more wealthy compared to before as the purchasing power of the consumers or buyers pertaining to that particular good or services has increased,everything else held constant.
  • Purchasing power of any good or service is generally reflected by the purchasing or buying capacity of that good or service with the amount of money that a consumer or buyer has at his or her disposal.
  • As the price of any good or service decreases,it becomes cheaper to the consumer,again everything else considering constant.In other words,it increases the purchasing power or capacity of the consumers or buyers.Therefore,the typical consumer or buyer will prefer or demand more of that particular good or service thereby,increasing its quantity demanded due to a price reduction.
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What are the different types of banking institutions
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