Answer:
c. American put.
Explanation:
American options are defined as the type of contract that allows owner to exercise his option rights on any date of his choosing. This can even be on the date of expiration of the option.
European option on the other hand only allows option rights on the day of expiration of the option contract.
American put option allows the owner sell his option at any period within the contract life.
In the given scenario Jeff decided to sell his August options on on the 10th of August (before the expiry date). In exchange he recieved cash of $2,500.
Answer:
$150,000
Explanation:
Calculation for the amount of Cash raised for the Levy Company
Using this formula
Cash raised for Levy Company = Number of Bonds * Face value of the Bond
Let plug in the formula
Cash raised for Levy Company = 100 * $1,500
Cash raised for Levy Company = $150,000
Therefore the amount of Cash raised for the Levy Company will be $150,000
Answer: Option A
Explanation: In simple words, business plan refers to an outline of framework that guides an organisation regarding its operations in future.
Business plan helps the organisation and its employees to set the chain of activities they need to perform for achieving their goals. Business plans also helps to determine the amount of capital needed to finance the projects that further helps the organisation to seek outside funding.
Hence from the above we can conclude that the correct option is A.
Answer:
Final value= $2,282.013
Explanation:
Giving the following information:
Erick is planning to invest $500 at the end of year one, 800 at the end of year two, and 900 at the end of year three at 4.5 percent interest.
To calculate the total final value of the investment, we need to use the following formula for each deposit:
FV= PV*(1+i)^n
Deposit 1= 500*1.045^2= 546.013
Deposit 2= 800*1.045= 836
Deposit 3= 900
Final value= $2,282.013
Answer:
The Bad Debt expense will be in year 1;
Explanation:
The Bad Debt Expense $45,000*1%=$450
The journal entry will be
Bad Debt Expense Dr.$450
Account Receivable Cr.$450
