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Rufina [12.5K]
3 years ago
10

An investor with no other positions buys 1 dwq jun 60 call at 3.50. if the investor exercises the call when the stock is trading

at 68 and immediately sells the stock in the market, what is the investor's profit or loss?
a.$450 profit.
b.$350 profit.
c.$450 loss.
d.$350 loss.
Business
1 answer:
miskamm [114]3 years ago
6 0
Answer: $450 profit  
The investor exercised the right to buy the stock for 60 and can sell the stock in the market for 68 for an $8 per-share gain.  
The gain of 8 minus the premium of 3.50 gives the investor a profit of 4.50
(4.50 Ă— 100 = $450).
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. Dallas Wildcat Drilling Co. sells an oil-drilling rig for $3,000,000. The drilling rig was purchased in 2013 for $2,000,000. D
olga2289 [7]

Answer:

$2,200,000 gain

Explanation:

When the amount received from the disposal of an asset is lower than the carrying or net book value (NBV) of the asset, the company makes a loss on disposal otherwise, the company makes a gain on disposal.

The carrying amount of the asset is the difference between the asset's cost and accumulated depreciation as at the date of disposal.

Asset NBV = $2,000,000 - $1,200,000

= $800,000

Gain/(loss) on disposal = $3,000,000 - $800,000

= $2,200,000

5 0
3 years ago
What happens if money needs to be transferred from one agency to another and the legislature is not in session to authorize this
kvv77 [185]

Answer:

The legislature budget board and the governor are authorize to transfer money from one agency to other.

Explanation:

Given:

Money needs to be transferred from 1 agency to other when legislature is not in session:

Solution:

When Legislature is not in session, the legislature budget board and the governor are authorize to transfer the money from one agency to other during emergencies.

3 0
3 years ago
Paradise Travels is an all-equity firm that has 6,000 shares of stock outstanding at a market price of $34 a share. The firm's m
xenn [34]

Answer:

$2.38

Explanation:

Number of shares purchased

= $40,000 / $34

= $1,176

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EBIT / 6,000 = (EBIT - $2,800) / 4,824

4,824 EBIT = 6000 EBIT - $16,800,000

1,176 EBIT = $16,800,000

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= [EBIT - ($40,000 * 0.07)] / (6,000 - 1,176)

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3 years ago
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Answer:

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Explanation:

7 0
3 years ago
cite three real life situations where quadratic equations are illustrated. Formulate quadratic equations out of these situations
NISA [10]

Answer:

I want to know the sides of a pizza if the width is 9 inches larger than the height and the area is 250 squared inches.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.

Explanation:

To solve this you just have to think on the unknown value and represent it as "X" in the first problem we do not know the length or width but we have a values given between them, so if "x" is the height then the width becomes "x+9" so those two values multiplied become the area.

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With this you just keep solving the others.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

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x(x+-5)=2\\x^{2} +.5x=2\\x^{2} +.5x-2=0\\

My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.

57,600 is the area and width will be "x"

x(x+200)=57,600\\x^{2} +200x=57,600\\x^{2} +200x-57,600=0\\

7 0
3 years ago
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