Answer:
a) $8
b) $4
c) Decrease
Explanation:
Background.
A call option as you probably know, is an agreement to buy an asset on or before a particular day at a price already determined in the agreement.
a) the Intrinsic value of the option is the market price minus the strike price.
Intrinsic Value = Market Price - Strike price
= $43 - $35
= $8 per share.
It is worthy of note that for an option, of the intrinsic value dips into negative figures it is just said to be 0.
b) To calculate the time value, we subtract the intrinsic value from the call premium
= Call Premium - Intrinsic value
= $12 - $8
= $4
c) The call option has 6 months to maturity and the dividends are to come in 3 months. Share prices usually drop after a dividend has been paid so because the call option matures in 6 months, the price of the call option will DECREASE owing to the Expected drop in stock price.
Answer:
$9.34
Explanation:
Provided that,
Time takes for removing the virus = 40 minutes
Paid per hour = $14
We know that 1 hour has 60 minutes so 40 minutes would be equal to
= 40 minutes ÷ 60 minutes
= 0.67
So, the direct cost of this service would be]
= Paid per hour × time taken
= $14 × 0.6667
= $9.34
We simply multiplied the paid per hour by the time taken so that the direct cost could find out
Answer:
The correct answer is D
Explanation:
The formula to compute the EBIT (Earnings before Interest and Tax) is as:
EBIT (Earnings before Interest and Tax) = Revenue - Provision for income tax - amortization and depreciation - Interest expense - income from continuing operation
where
Revenue is $2,462
Depreciation and amortization is $216
Provision for income tax is $40
Income from continuing operation is $53
Interest expense is $230
Putting the values above:
EBIT = $2,462 - $216 - $230 - $53 - $40
EBIT = $1,923