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mamaluj [8]
3 years ago
5

You write one MBI July 139 call contract (equaling 100 shares) for a premium of $17. You hold the option until the expiration da

te, when MBI stock sells for $150 per share. You will realize a ______ on the investment.
Business
2 answers:
stich3 [128]3 years ago
7 0

Answer: $600 profit

Explanation:

Call contract = $139

Number of shares = 100

Selling price per share = $150

Premium = $17

(Call contract - selling price) × number of shares

($139 - $150) × 100 = -$1100

Total premium = $17 × 100 = 1700

PROFIT / LOSS ON investment = - $1100 + $1700

= $600

OR

Short call profit = Min [0, ($139 - $150)(100)] + $1700 = $600

$600 profit

Bogdan [553]3 years ago
4 0

Answer:

$600 loss

Explanation:

A call option is defined as a contract that exists between ba buyer and seller of a call option to exchange securities held at a particular price within a specific period.

To calculate the profit realised on the investment

Profit from call option= (150- 139) * 100

Profit from call option= $1,100

Profit from premium= 17 * 100

Profit from premium= $1,700

Profit on investment= Profit from call option - Profit from premium

Profit on investment = 1,100 - 1,700 = -$600

So there is a loss of $600

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Two athletes of equal ability are competing for a prize of $10,000. Each is deciding whether to take a dangerous performance-enh
Degger [83]

Answer:

a) attached below.

b) for $x < $5000 will cause taking the drug to be part of the Nash equilibrium

c) will make the athletes feel better because the value their payoff will increase

Explanation:

<u>a) 2 * 2  payoff matrix  describing the decision faced by the athletes </u>

attached below

when both players take the drug the payoff for each player = $5000 - x

when neither player  takes the drug the payoff for each player = $5000

When only one player takes the drug his payoff = $10000 - x

<u>b) If we consider the value of $x to be involved in the Nash equilibrium then </u>

; $5000 - $x > 0  becomes the best response

hence for $x < $5000 will cause taking the drug to be part of the Nash equilibrium

c) Lowering the negative effect of the drug ( i.e. when the value of x is reduced )

will make the athletes feel better because the value their payoff will increase

5 0
3 years ago
dan has agi of $50,000 and paid the following taxes during this tax year. state income tax withholding $ 1,375 state income tax
Savatey [412]

$2,175 dan can deduct for taxes as an itemized deduction this year.

What is a tax?

A tax is a mandatory financial charge or other type of levy placed on a taxpayer (an individual or legal entity) by an administrative body to pay for various public expenditures and administrative costs.

The following chart shows how the itemized deduction was calculated:

State income tax withholding and anticipated payments for state income tax

= $1,375 + $800

= $2,175

We do not deduct Social Security tax, state excise tax on alcohol, or federal income tax withholding because these taxes are taxable.

Additionally, the automobile license is dependent on the weight of the vehicle rather than its market worth. Therefore, this wouldn't be regarded.

Additionally, we might choose among the state income tax or the sales tax. So, in the calculating section, we include the state income tax.

know more about deduction of taxes from the given link

brainly.com/question/13459204

#SPJ4

4 0
1 year ago
Kurt simmons has 50/100/15 auto insurance coverage. one evening he lost control of his vehicle, hitting a parked car and damagin
IrinaK [193]
Damage to the parked car is $5,400. Damage to the store is $12,650. Total damage is calculated as follows : 
Total damage = damage to the car + damage to the store Substitute the values in the formula : 
Total damage = $5,400 + $12,650 = $18,050. Total damage is $18,050. 
The insurance company will cover a maximum of $15,000. The remaining amount of the damage has to be paid by Kurt. The remaining amount is calculated as : 
Amount paid by Kurt = Total damage – amount paid by insurance company 
Substitute the values in the formula : 
Amount paid by Kurt = $18,050 - $15,000 = $3,050 
Therefore, he will have to pay the remaining $3,050
7 0
4 years ago
The government of the United States borrows most of the money it needs by __________.
Anastasy [175]
 government of the United is federal government and it borrows most of the money it needs by <span>selling Treasury Bills and Treasury bonds
so the correct option is B
because through taxes it cannot borrow and through issuing stocks not because its related to companies and of course govt don't take loan
hope it helps</span>
5 0
3 years ago
The emphasis of the Second New Deal was on a.economic recovery, creating government programs to address the immediate needs of t
Artist 52 [7]

The correct answer is A) economic recovery, creating government programs to address the immediate needs of the unemployed.

The emphasis of the Second New Deal was on economic recovery, creating government programs to address the immediate needs of the unemployed.

The Second New Deal included new programs to extend federal aid and stimulate the nation's economy, such as the Rural Electrification Administration.

In the decade of 1930s, rural America had no electricity and clear water. The Rural Electrification Administration hired Lester Beall, a graphic designer that created a series of posters describing the benefits of electrification for the communities.

Another example is President Roosevelt’s works progress administration of 1935 that considered many infrastructure programs for the benefit of the U.S. citizens. He also considered the Federal Project Number One. This was a program aimed to help writers, musicians, and artists. Roosevelt aimed to get jobs for these people in order to entertain the American citizens during those difficult times.

6 0
3 years ago
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