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mr_godi [17]
3 years ago
15

A stock is currently selling for $75 per share. You could purchase a call with a strike price of $73 for $4. You could purchase

a put with a strike price of $73 for $2. Calculate the intrinsic value of the call option.
Business
1 answer:
Andrew [12]3 years ago
4 0

Answer:

$2

Explanation:

Th intrinsic value of an option is the difference difference between the current stock price and the strike price. That is,

Intrinsic value = Current stock price - Strike price

For the call option in the question, its intrinsic values can be calculated as follows:

Intrinsic value = $75 - $73 = $2

Therefore, intrinsic value of the call option is $2.

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FrozenT [24]
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Explanation: Espero que esto te ayude si no dime para ir a buscar mas informacion!

8 0
3 years ago
Shoshanna, the regional manager of a global sales organization, gives freedom to the sales representatives on the amount spent o
Citrus2011 [14]

Answer:

C. Ethical Standards

Explanation:

The ethical standards establish the parameters of behavior that owners and top executives expect from employees and also from suppliers, at least to the extent of their relationship with the organization.

3 0
3 years ago
The​ ________ section of the statement of cash flows includes increases and decreases in​ long-term assets.
andre [41]
The investment activities section of the statement of cash flows includes increases and decreases in long-term assets. 

Long-term assets are investment based activities which included equipment used in a business and the building thats built for a business to run in. If you were to sell your long-term assets and make a profit, this would also but included in the investment activities section of the state of cash flows. 
6 0
3 years ago
To what extent do cost recovery deductions based on the capitalized cost of a tangible asset reflect a decline in the economic v
sladkih [1.3K]

Answer:

Cost recovery deductions do not have relationship to any decline in value of the property to which the deduction relates.

Explanation:

Capitalised costs are the cost that is incurred when building and financing a fixed asset. For example labour cost in building and financing an asset.

These expenses are added to the cost of the asset (capitalised) and taken gradually over time through depreciation, depletion, and amortization. They are not taken out of revenue in the period when they were incurred.

So cost deductions through capitalised cost is not related to the value of the asset but is an expense that is incurred in relation to the asset, and it's payment is spread out over time.

For example if $1,200 is incurred on construction of an asset worth $500,000. If $1,200 is capitalised over 12 months $100 will be deducted each month from expense. This does not affect the value of the asset ($500,000).

7 0
3 years ago
Naomi is willing to pay $120 dollars for a multi-cat condo. She ends up paying $90. What is naomi's consumer surplus?
Yanka [14]

Naomi is willing to pay $120 dollars for a multi-cat condo. She ends up paying $90. Naomi's consumer surplus is $30.

Consumer surplus is also known as buyer's surplus. It is the economic measure of a customer's excess benefit. It is calculated by analyzing the difference between the consumer's willingness to pay for a product and the actual price they pay.

Consumer surplus is calculated by:

Consumer surplus = Maximum price buyer is willing to pay – Actual price.

So, Naomi is willing to pay $120 dollars for a multi-cat condo but she ends up paying $90.

Therefore, $120 - $90 = $30

Hence, Naomi's consumer surplus is $30.

To learn more about Consumer surplus here:

brainly.com/question/15224764

#SPJ4

8 0
2 years ago
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