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kotykmax [81]
3 years ago
13

A United States investor writes five naked call option contracts. The option price is $3.50, the strike price is $60.00, and the

stock price is $57.00. What is the initial margin requirement?
Business
1 answer:
Slav-nsk [51]3 years ago
5 0

Answer:

The initial margin is $5,950

Explanation:

To calculate for the initial margin, we have to decide from two options. After making the calculations, the initial margin would be the one with a greater outcome.

Given:

Option price = $3.50

Strike price = $60

Stock price = $57

Stock price - Strike price = $60- $57 = $3

Option 1:

500 * [(3.5 + 0.2)*(57-3)

= $5,950

Option 2:

500 * (3.5 + 0.1 * 57)

= $4,600

Since we got $5,950 in our first calculation, we will take that as our initial margin as it is greater than the second option. It can be provided in part with initial sum of $500 * 3 = $1,750

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Roberts Corporation manufactures home cleaning products. One of the products, Quickclean, requires 2 pounds of Material A and 5
Mumz [18]

Answer:

Total production= 14,500 units

Explanation:

Giving the following information:

The finished goods inventory on hand at the end of each month should equal 4,000 units plus 25% of the next month's sales.

The expected sales in January are 14,000 units and expected sales in February are 18,000 units.

Assume that on January 1 the inventory of Quickclean was 8,000 units.

Production for January:

Sales= 14,000

Ending inventory= 4,000 + (18,000*0.25)= 8,500

Beginning inventory= (8,000)

Total production= 14,500

6 0
3 years ago
Your auto insurance policy has a $200 monthly premium and $700 deductible. What is the maximum amount you will have to pay out-o
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When you take out an insurance policy your monthly premium is the amount you pay each month to keep your insurance. In this case, the $200 a month premium allows you to file a claim if something were to happen because you are paying for the insurance services. When you set up your premiums they will base your monthly service rates off of your deductible amount if you need to file a claim. The out-of-pocket for a car accident with a deductible of $700 is $700. Once the deductible is paid, the insurance will pay out for the damage.

6 0
3 years ago
Read 2 more answers
G why is the future value always more than the present value?
olya-2409 [2.1K]
The future value is always more than the present value because the value of the dollar can be higher in the next day. plus it can be adding the interest in the future value. 
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3 years ago
In an oligopoly, the total output produced in the market is
N76 [4]

Answer:

Letter c is correct. <em><u>Higher than the total output that would be produced if the market were a monopoly but lower than the total output that would be produced if the market were perfectly competitive.</u></em>

Explanation:

An oligopoly is a market situation that occurs when there are a small number of companies that dominate the supply of a particular product or service in a sector of the economy. It can occur naturally or structurally, and the purpose of this market configuration is to have greater competition and price control, so that there is greater profitability.

This scenario is characterized by imperfect competition, which is similar to the monopoly market, but in oligopoly production is higher than in monopoly, because there is more than one supplier of the same product. And production in an oligopoly is lower than in a perfectly competitive scenario where there are many suppliers and none have the ability to affect market price.

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3 years ago
Employees at House of Pancakes pretend that they like their boss even though most of the time they do not. These employees are e
tia_tia [17]

Although they frequently don't, House of Pancakes employees pretend to like their employer. These workers are performing emotional labor known as surface acting.

When someone engages in surface acting, they don't truly strive to experience the emotions they want to portray; instead, they fake the necessary feelings. They might put on "false smiles" or other necessary emotional displays that don't accurately represent how they really feel.

You are surface acting if you feel one feeling and try to express a different one. Imagine you have a stressful commute and arrive at work. Even though you're still not in a particularly good mood, you might put on a false smile for a coworker as you get your morning brew.

Learn more about Emotional labor here

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