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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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On April 1, Griffith Publishing Company received $33,480 from Santa Fe, Inc. for 36-month subscriptions to several different mag
WARRIOR [948]

Answer:

Debit Unearned Fees, $8,370

Credit Fees Earned, $8,370

Explanation:

Based on the information given we were told that the Company received the amount of $33,480 from Santa Fe for 36 month on April 1 in which we are to assumed that the adjustments will be made at the year end this means that the adjusting entry will be to:

Debit Unearned Fees, $8,370

Credit Fees Earned, $8,370

Calculated as :

Amount received $33,480/36 months ×9 months

=$8,370

Note that from 1st April to 31st December will give us 9 months.

7 0
3 years ago
when a person uses face-to-face presentations to promote goods and services, he is said to be using as a sales technique.
gulaghasi [49]

Personal selling is the face-to-face presentation and promotion of products and services.

<h3>What is personal selling?</h3>

Personal selling, commonly referred to as face-to-face selling, is a sales technique where a single salesperson tries to persuade a consumer to purchase a product. It is a type of advertising where the salesperson employs their knowledge and talents in an effort to close a deal.

<h3>What do you mean by sales technique?</h3>

A sales technique is a strategy of selling used by a company's sales team or a salesperson to close more deals and make more money. It's a tactic to improve a company's sales procedure. A sales methodology is adaptable and open to change once its efficacy has been tested through trials.

To know more about salesperson, visit:

brainly.com/question/951074

#SPJ4

6 0
1 year ago
Jacob is a customer whose sales region code is 14. He had bought goods worth $150 from ABC company in June. He does not have dea
anyanavicka [17]
I’m not sure Hyde’s we hygiene but we are going on the boat and we can go to get your hair and get some rest before I leave I can go to
4 0
3 years ago
Jane and Joe made two investments of $25,000 and $40,000 with different investors that yielded a combined rate of return of 10%
OLga [1]

Answer:

10.625%

Explanation:

The combined rate of return for two investments can be calculated using the below mentioned formula:

Combined interest=[(interest rate of first investment*first investment+interest rate of second investment*second investment)/(First investment+Second investment)]

In the given question

Combined interest=10%

Interest rate of first investment=9%

First investment=$25,000

Interest rate of second investment=?

Second investment=$40,000

10%=[(9%*25,000+Interest rate of second investment*$40,000)/(25,000+40,000)]

10%=(2250+Interest rate of second investment*$40,000)/65,000

10%*65,000=2250+Interest rate of second investment*$40,000

6500-2250=Interest rate of second investment*$40,000

4,250=Interest rate of second investment*$40,000

Interest rate of second investment=10.625%

5 0
3 years ago
Your medical group wants to expand by starting a new venture, owning and operating a pharmacy. In order to increase the chances
kolezko [41]

Explanation:

The opening of any business is subject to potential risks, so it is necessary for new entrepreneurs to maintain a proactive stance so that organizational practices and processes are effectively aligned to prevent risks. That's why it's important to know the market you're going to be in, as well as risk and opportunity management to guide your business to success.

Some potential <u>risks </u>in opening a pharmacy would be:

Product Risk: The products that will be marketed must be carefully selected and in accordance with the quality and safety parameters, especially when it comes to the sale of medicines, which presents greater care in marketing.

Market risk: A company only progresses if it has market to operate. A new business should consider whether it will be able to deliver a quality product with customer benefits compared to its competitors.

Supplier Risk: Choosing good suppliers is essential to organizational success. In the pharmaceutical industry it is necessary to choose good and reliable laboratories so that there is no risk of obtaining unsafe medicines for human health.

But in addition to risks, <u>opportunities </u>must also be considered when opening a new business. In this case they can be:

Market Opportunity: A pharmacy is a business that not only sells medicines, there may be increased profitability by selling non-durable goods such as food, beverages and beauty products, widely consumed by various types of consumers.

Reputation Opportunity: Because it is a pharmacy formed by a medical group, the reputation and image to the consumer can be enhanced, which creates greater security in choosing to buy a drug in your establishment.

Branding opportunity: A company that markets private label products ensures benefits such as consumer confidence and increased profitability by marketing low cost manufacturing products to the company.

3 0
3 years ago
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