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svp [43]
3 years ago
13

You purchase one IBM July 120 put contract for a premium of $5. You hold the option until the expiration date when IBM stock is

at $123 per share on the market. How much profit or loss you will realize a on the investment? A. $500 loss B. $0 profit C. $300 profit D. $200 loss
Business
1 answer:
grin007 [14]3 years ago
4 0

Answer: Net loss = $2

Explanation:

Given that,

Purchase one IBM July 120 put contract for a premium of $5

IBM stock is at $123 per share on the market

In buying these kind of call option, a person can makes the profit if the future price of the share is greater than the strike price.

Here,

Profit = $123 - $120 = $3

But, we have to deduct the premium paid that is $5

Therefore,

Net loss = Profit - premium paid

= 3 - 5

=$2 ⇒ This much loss realize on a the investment.

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lorasvet [3.4K]

Answer:

B beacuse u can look it up

Explanation:

Look it up

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8 0
3 years ago
The study done by the Committee of Sponsoring Organizations (COSO) on financial statement frauds that occurred during the period
Nadya [2.5K]

Answer:

Most of these firms had audit committees that met at least four times a year.

Explanation:

COSO stands for Committee of Sponsoring Organization, which is an organization that is dedicated to offering the thought of guidance as well as leadership on the fraud deterrence, internal control and management of  enterprise risk.

From the findings which is not found as fraud is that the most of the firms or businesses had committees of audit which met at least 4 times a year.

3 0
2 years ago
Barker Company paid cash to purchase two identical inventory items. The first purchase cost $18.00 cash and the second cost $20.
Virty [35]

Answer:

The correct answer is D

Explanation:

Cash flow method is the method where the costs or the expenses are moved or shifted from the starting to the end of the firm. The flow of expenses does not apply to the inventory but also involve the other factors in the extra processes to which the cost is attached.

So, the baker purchased the inventory items at different prices and then the sold the one inventory item at profit, so the amount of the cash flow from the operating activities will not affected through the method of cash flow.

8 0
3 years ago
In 2018, Rachel received a $1,900 refund of state income taxes that she paid in 2017. In 2017, Rachel claimed itemized deduction
Akimi4 [234]

Answer:

$1,100

Explanation:

The amount which Rachel must include in her 2018 gross income would be computed by applying an equation which is shown below:

= Itemized deductions - standard deductions

= $6,900 - $5,800

= $1,100

The $1,100 would be included in the $1,900 refund which is presented in her 2018 gross income.

The excess amount between itemized deductions and standard deductions would indicate the extra refund amount which is already included in its $1,900 refund amount

8 0
3 years ago
Read the following passage and choose the appropriate term from the following list: financing, real, bonds, investment, executiv
PolarNik [594]

Answer:1. Executive airplanes

2. Brand names

3. Bonds

4. Investment or capital budgeting

5. Financing

Explanation:

Companies properties consist of assets with physical attributes called tangible such land and those without physical attributes refers to as intangible assets such goodwill, trade marks etc, firms can raise capital by selling bonds which is a debt equity or selling stocks which is a proprietary equity, decision on buying or spending or capital project is called investment or capital budgeting decision and the mode of raising money for expenditures is called financing decisions.

8 0
3 years ago
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