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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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1. "The biggest thing when we talk about personal branding is that it’s a _________" a. Hard thing b. Waiting game c. Process d.
notsponge [240]

Answer:

1- c. Process.

2- d. Consistency.

Explanation:

A personal brand can be defined as a continuous process of using marketing efforts and developing different factors to increase the perception and reputation of a company, individual, group, institution, etc.

Personal brand management corresponds to a continuous process of action and positioning, so that the target audience that you want to reach through your brand, can get to know you, including the values ​​and the solution of the problems and benefits you have to offer.

This is a process that demands consistency of actions and posture, since the process of consolidating a personal brand is a continuous process that requires a lot of research, knowledge and analysis of trends and market, advertising, presence in the media most used by the public, demonstration of seriousness, quality, benefits, quick response to problems, and several other factors that gradually contribute so that through a consistent process the brand has value and is consolidated in the market.

8 0
3 years ago
Which of the following is NOT a risk of exporting? Select one: a. Delegation of marketing activities to a local agent b. Locatio
Sholpan [36]

Answer:

E. High manufacturing cost

Explanation:

Export involves the sales of goods and services to another country. It is part of the international trade whereby goods produced in a country are sold to other countries. Just like all business activities, there are risk involved. Risk of exporting is the likelihood that there will be a loss in the sales of goods and services to another country. Various risk factors includes tariff barriers, cost of transportation and so on.

However, high manufacturing cost is not a risk of exporting. High manufacturing cost is the increase in the cost of producing and manufacturing a certain good. When this increases or rather when it's high, the prices of the products manufactured also increases. So there is no potential loss posed by high manufacturing cost.

7 0
2 years ago
Read 2 more answers
Local Co. has sales of $ 10.1 million and cost of sales of $ 5.5 million. Its​ selling, general and administrative expenses are
Firlakuza [10]

Answer:

1. 45.5%

2. 13.3%

3. 7.2%

Explanation:

The formulas and calculations are shown below:

1. Gross margin = (Sales - cost of sales) ÷ (sales) × 100

                          = ($10.1 million - $5.5 million) ÷ ($10.1 million) × 100

                          =  ($4.6 million) ÷ ($10.1 million) × 100

                          = 45.5%

Gross profit = Sales - cost of sales

2. Operating margin = (Gross profit - selling, general and administrative expenses - research and development - annual depreciation charges) ÷ (sales) × 100

= ($4.6 million -  $460,000 or $0.46 million - $1.4 million - $1.4 million) ÷ ($10.1 million) × 100

= ($1.34 million) ÷ ($10.1 million) × 100

= 13.3%

Operating income = Gross profit - selling, general and administrative expenses - research and development - annual depreciation charges

3. Net profit margin = (Operating income - taxes) ÷ (sales) × 100

= ($1.34 million - $0.6097 million) ÷ ($10.1 million) × 100

= ($0.7303 million) ÷ ($10.1 million) × 100

= 7.2%

The income tax expense =  Operating income × income tax rate

                                          = $1.34 million × 45.5%

                                           = $0.6097 million

6 0
3 years ago
Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amou
valentina_108 [34]

Answer:

The journal entries required as at 30 September,2015 as well as the post-closing trial balance are hereby attached.

Explanation:

In preparing the journal entries, the golden rule of double of entry which opined that for every debit there must a corresponding credit and versa.

This implies each transaction event has two impacts in the books of accounts,as a result,both must be shown to ensure proper of keeping records and smooth accounting processes.

Download xlsx
4 0
2 years ago
Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2020 and 2021), Trev
labwork [276]

Answer and Explanation:

Please find answer and explanation attached

7 0
3 years ago
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