Answer:
- 41.67%
Explanation:
For computing the rate of return first we have to compute the initial investment which is shown below:
= Number of shares × per share × initial margin percentage
= 300 shares × $60 per share × 60%
= $10,800
Now Loss on sale of common stock is
= (Selling price - purchase price) × number of shares purchased
= ($45 - $60 ) × 300 shares
= - $4,500
So the rate of return will be:
= Loss ÷ Initial Investment
= - $4,500 ÷ $10,800
= - 41.67%
Answer: $107,500
Explanation:
There is an "Exclusion of gain on sale of home" provision by the IRS that allows for a single tax payer to exclude up to $250,000 from the sale of their primary home. A home qualifies as primary if the owner has lived in it for 2 years or more so Steve's home here is a primary home.
The gain he received was:
= 705,000 - 347,500
= $357,500
From this gain, $250,000 can be excluded so total gain recognized:
= 357,500 - 250,000
= $107,500
Answer:
B) Abstract and opinion.
Explanation:
Abstract and opinion can also be call Abstract of title:
this is the records or evidence of the full history of the property from the conveyance,wills, legal backing, and the list of those people that as assume ownership of the property for a particular period of time.
A full summary of all consecutive grants, conveyances, wills, records, and judicial proceedings affecting title to a specific parcel of real estate, together with a statement of all recorded liens and encumbrances affecting the property and their present status, but not including encroachments and forgeries, is known as a Abstract of Title or Abstract and opinion.
Answer:
Explanation:
1st strategy : Selling pound forward
The spot rate of the pound is quoted at $1.51.
The one-year forward rate exhibits a 2.65% premium.
The one-year forward rate = 1.51 ( 1+ 0.0265)
= $ 1.55
Dollars received = 100000 * 1.55 = $155000
2nd strategy : Buying put option
The strike price of put = $1.54
premium on option is $.03
Amount received per option = $ 1.54 - $ 0.03 =$1.51
Total Dollars received = 100000* 1.51 = $ 151000
the best possible hedging strategy is Selling pound forward and receiving $155000
Answer:
increase equilibrium price and quantity if the product is a normal good.
Explanation:
In the case of normal good there is a direct relationship between the income and the quantity demanded. That means if the income rises so the quantity demanded would also rised and if the income declines so the quantity demanded also fall
So as per the given situation if there is a rise in income so the equilibrium price and quantity would increased in the case when the product is a normal good
