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LUCKY_DIMON [66]
3 years ago
8

"A customer is long the Swiss Franc at a cost of $.60 per SF. The customer wishes to place a collar on the position using PHLX S

F FLEX options. To create the collar, the customer would:"
Business
1 answer:
tia_tia [17]3 years ago
3 0

Answer:

To create the collar, the customer would: <u>buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call.</u>

Explanation:

The meaning of a "collar" is that a put is bought at a strike price that is less than the price of the underlying instrument (this implies that a floor has been put on the price of the instrument); and that a call is disposed at a strike price which is higher than the price of the underlying instrument (this indicates that a ceiling above which the instrument will be called away has been created).

When a collar is put on the price, it indicates that the customer is majorly giving a guarantee for the underlying instrument's minimum and maximum price.

This should make the net cost of the collar to be close to zero due to the fact that the two contracts are "out the money" and also because the premium paid to buy the put is offset by the premium received when the call was sold.

Therefore, since customer in the question wishes to place a collar on the position using PHLX SF FLEX options, he would <u>buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call</u> to create the collar.

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Causwell Company began 2018 with 11,000 units of inventory on hand. The cost of each unit was $4.00. During 2018 an additional 3
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Answer and Explanation:

For computing the cost of goods sold under two method first we have to determine the cost per unit which is shown below:

The average cost per unit is

= $108,750 ÷ 25,000 units

= $4.35

Now the cost per unit is

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Beginning units (11,000 units × $4) $44,000

The Remaining cost for 35000 units ($200,100 - $44,000)  $156,100

Divide by  Purchase cost per unit of 35000 units   $4.46

Now the cost of goods sold are as follows

1. Under the FIFO method

Beginning        11,000 × $4.00  $44,000  

Purchased        14,000 × $4.46  $62,440  

Total         25,000           $1,06,440

2. Under the LIFO method

Purchased        25,000 × $4.46  $1,11,500

4 0
3 years ago
The alkene that is responsible for strong smell of orange is
SVETLANKA909090 [29]
The alkene that is responsible for strong smell of orange is limonene. The limonene is <span>common </span>D-isomer, <span>a naturally occurring chemical which is the major component in oil of orange. </span>It is used<span> as a </span>fragrance<span> in </span>perfumery and cosmetic products, but also<span> as a </span>flavoring<span> to mask the bitter taste of </span>alkaloids and foods. 

5 0
3 years ago
Martina invested her savings into her business when she started it. later she added more capital and she has kept some of her pr
musickatia [10]

Answer:

Owner's equity.

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Owner's equity is the amount of ownership/value the owner has in the business after subtracting debt and liabilities.

8 0
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Bradds, Inc., has sales of $589,000, costs of $278,000, depreciation expense of $30,000, interest expense of $25,000, a tax rate
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Answer:

$106.400

Explanation:

Icome statement

Sales of  $589,000

Costs of -$278,000

Depreciation expense of -$30,000

Interest expense of -$25,000

===============================

Total                $ 256.000

Tax Rate 35%  - $89.600

Net Income  $ 166.400

Dividens Paid Out - $60.000

Addition to Retained Earnings $106.400

3 0
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What is defined as "the withdrawal of investments from activities (and regions) that yield low rates of profit in order to reinv
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The given statement is defined as creative destruction

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