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vitfil [10]
3 years ago
6

An option trader buys 1 ABC April 25 put. A few months later, the trader exercises the option. The trader's net sales proceeds e

qual the_______________.
[A] strike price
[B] strike price plus the premium
[C] strike price minus the premium
[D] market price of the stock when the put was exercised
Business
1 answer:
Lina20 [59]3 years ago
6 0

Answer:

[C] Strike price minus the premium

Explanation:

A put buyer refers to the one who purchases a right (and not the obligation) to sell(put) the underlying asset at a pre determined strike price/exercise price at a future date.

A put buyer is under no obligation to exercise his right of selling the underlying asset. He will exercise his right only when his strike price is greater than the current market price upon expiry of the contract.

Put Buyer's profit is expressed as;

= Strike price -  Option premium paid - Current market price upon expiry

Thus, his NET sales proceeds are equal to his Strike Price as reduced by Option premium paid.

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Speedy Print Shop bought a new photocopier to offer customers the opportunity to make high-quality copies out of their digital p
Brilliant_brown [7]

Answer:

Option (D) is correct.

Explanation:

The payback period is the amount of time required to get your investment back.

Shorter the payback period, the better it is for the investor.

Given that,

Useful life = 6 years

Copier cost = $7,740

Generate annual cash inflows = $2,150

Therefore,

Payback period = Initial investment ÷ Annual cash inflow

payback period = $7,740 ÷ $2,150

                          = 3.60 years

                       

8 0
3 years ago
In an oligopoly situation, a wise marketing manager will probably set the firm's price level:
Aleonysh [2.5K]

Answer:

Letter A is correct.<u><em> At the competitive level.</em></u>

Explanation:

An <u><em>oligopoly</em></u> is a marketing structure that occurs when some companies come together to determine the supply of products or services.

In this type of market there is imperfect competition, where market control is exercised by few companies, capable of regulating the behaviors and market decisions of other companies.

Therefore in an oligopoly situation the ideal is that the price level of a company be defined at a competitive level, since the goods produced are homogeneous and the degree of differentiation occurs in the variables of service, quality, image and not so much in the variation of prices. price.

7 0
3 years ago
Organizational development is a broad approach to change with a diagnostic focus that is associated with the systems model of ch
Sliva [168]

Answer:

true

Explanation:

Organizational development (OD) is a process that focuses on increasing the organization's efficiency and effectiveness through ongoing programs that improve the organization's structure and processes, e.g. employee training necessary to improve the employees' productivity. OD must be planned and managed from top to bottom, and the processes must be improved using behavioral science knowledge.

3 0
3 years ago
What determines the color or a translucent object
Lady bird [3.3K]
It's somewhat see through
5 0
3 years ago
Read 2 more answers
On May 1, Soriano Co. reported the following account balances along with their estimated fair values:
s2008m [1.1K]

Answer:

Receivables (Dr.) $143,600

Inventory (Dr.) $76,400

Copyrights (Dr.) $577,000

Patented Technology (Dr.) $913,000

Goodwill (Dr.) $32,800

Current Liability (Cr.) $197,000

Long term liability (Cr.) $658,300

Cash (Cr.) $845,000

Contingent Consideration (Cr.) $42,500

Professional Fee Expense (Dr.) $141,000

Cash (Cr.) $141,000

Paid of Investment banking firm

Explanation:

Total of Assets 1,710,000

Total of Liabilities 855,300

Net Assets 854,700

Total Fair value of identifiable Assets 854,700

Fair value of contingent Liability 42,500

Consideration Paid as Cash 845,000

Good will $32,800

6 0
2 years ago
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