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vova2212 [387]
2 years ago
6

You write one JNJ February 70 (strike price) put for a premium of $5. Ignoring transactions costs, what is the break-even price

of this position
Business
1 answer:
Lera25 [3.4K]2 years ago
4 0

Answer:

$65

Explanation:

The computation of the break even price for this position is shown below:

Break even price is

= Strike price - premium

= $70 - $5

= $65

The stock goes upward to $65 so you lose only $5 but it falls than the stock would be $0

Hence, the break even price of this position is $65

Therefore by applying the above formula we can get the break even price and the same is to be considered

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Rainey Enterprises loaned $40,000 to Small Co. on June 1, Year 1, for one year at 6 percent interest. Required Show the effects
MariettaO [177]

<u>Explanation:</u>

Cash flow is a statement which shows the amount of cash inflow and outflow of the company. With the help of the cash flow statement the company can determine its efficiency in managing the debt and credit in the company.

The operations of the company can be found with the CFS. The investors to the company can understand the position of the company with the cash flow statements. Financial strength of the company can be determined with cash flow statement.

7 0
2 years ago
a bond has a face value of $1,000, an annual coupon rate of 7 percent, yield to maturity of 10 percent, and 20 years to maturity
rewona [7]

The bond that has a face value of $1,000 has a duration of 10 years.

<h3>What is a bond?</h3>

A bond is a type of security in the financial world where the issuer (debtor) owes the holder (creditor) a debt and is required, depending on the terms, to repay the bond's principal (i.e., the amount borrowed) at the bond's maturity date as well as interest (referred to as the coupon) over a predetermined period of time. The interest is typically due at regular intervals, such as every six months, once a year, and less frequently at other times. To finance long-term investments or, in the case of government bonds, to finance immediate expenses, the borrower can obtain external funds through the sale of bonds. Both bonds and stocks are considered to be forms of security, but the main distinction between the two is that (capital) stockholders have an equity stake in a company, whereas bondholders have a creditor stake.

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5 0
11 months ago
What is a disadvantage of government bonds?
hjlf
None of those answers are suitable to me.

Government bonds are generally regarded as low-risk and they typically have modest (low) interest rates for return on investment, and these are advantages really. So we can discount answer A, C, and D.

I guess you could say that bonds can be hard to find (Answer B) but this not really true. There is always a bond market to trade bonds on. It requires setting up a trading account or speaking to a broker so this can be more difficult than putting money in a bank account, but to be honest I don't think any of those answers are appropriate for the question.
3 0
3 years ago
Read 2 more answers
A small LTL shipment that originates on a truck in San Francisco and is moved from San Francisco to Las Vegas where it is unload
nikdorinn [45]

Answer:

False

Explanation:

Intermodal freight transport deals with the transportation of freight in an intermodal container or vehicle, using multiple different of transportation like ship, rail, and truck with no handling of any of the freight itself when changing

to different transport. Base on the scenario been described in the question, we can see that it false because it not does not mean the definition of intermodal freight

7 0
3 years ago
5. Consumers subconsciously screen out stimuli that they find psychologically threatening, even though exposure has already take
svetoff [14.1K]

Answer:

The correct answer is letter "E": Perceptual defense.

Explanation:

In psychology, perceptual defense refers to the suppression of a stimulus that represents a threat or an uncomfortable situation for an individual. Those inputs are distorted somehow by the individual to reject the unpleasant feeling so that the person does not feel that bad because of it. In such a way, the brain works as a defense mechanism able to distort information to mitigate the effects in the behavior produced by the stimulus.

5 0
3 years ago
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