Answer:
A) Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years. FINANCIAL ASSET CREATED: when the loan was received, a financial asset was created. Money is exchanged for a promissory note.
B) Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software. REAL ASSET CREATED: when the software was developed, a real asset was created. Money was invested in developing the software.
C) Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 1,500 shares of Microsoft stock. FINANCIAL ASSET CREATED: when the software was traded, a financial asset was created. A real asset was traded in exchange for financial assets.
D) Lanni sells the shares of stock for $80 per share and uses part of the proceeds to pay off the bank loan." FINANCIAL ASSET DESTROYED: when the loan is paid back, the financial asset (loan) ceases to exist. When the money is paid back to the bank, the loan and the promissory note cease to exist.
Answer:
Buy 0.8 shares for each option purchased
Explanation:
Calculation to determine What is necessary to hedge the position
Using this formula
N=Vu-Vd/U-D
U = stock price in case of an up move = $36
D = stock price in case of an down move = $26
VU = put option value if stock goes up = $0
VU = put option value if stock goes down = $32 - $26 = $6
Using this formula
N=
−
V
U
−
V
D
U
−
D
N
=
−
0
−
6
36
−
26
N
Now let calculate What is necessary to hedge the position
Value =74 x + 6
Hence,
90x=74x + 6,
x=6/(90-74)
x=6/16
x=.375
Answer:
False
Explanation:
Marketing is not a subset of advertising. In fact it is the opposite, advertising is the subset of marketing.
Advertising is mostly focused on acquiring customers and promoting sales. Generally, advertising is based on formulating campaigns to promote the products and increasing sales. These promotions are carefully planned out and well designed so they reach a target audience with the help of media such as radio, newspaper, television and magazines etc.
The expected increase in revenues is $2,20,000
.
The expected increase in costs is $1,40,000.
The Selling price per unit for the new 10,000 units order is $22. So, increase in revenues is to the extent of (10,000 × $22).
The question assumes excess capacity, hence fixed expenses will remain the same. The increase in Variable costs to the extent of (10,000 × $14) will contribute to an increase in costs.
Answer:
D. Simon, who is baking a cake that will be sold in a bakery
Explanation:
Simon is the producer here because he is producing a product to sell on the market.
