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sesenic [268]
3 years ago
15

The value of a listed put option on a stock is lower when _______________. I. the exercise price is higher II. the contract appr

oaches maturity III. the stock decreases in value IV. a stock split occurs II only II and IV only I, II and III only I, II, III and IV
Business
2 answers:
mamaluj [8]3 years ago
5 0

Answer: Only II

The contract approaches maturity

Explanation:

The value of a listed put option is usually lower when it's approaches maturity because at that point the seller has to sell the option before the expiration of the agreed date. A put option allows the investor to sell at any price before a specified date. Once the option is close to maturity, the investor will most likely sell lower than the normal price since he does not want to told the option beyond expiration date.

Bess [88]3 years ago
5 0

Answer: The correct answer is ONLY II

Explanation: A PUT OPTION is an option to sell a security at an agreed price.

The value of a listed put option is lower as its expiration date draws closer to. This is due to the fact that there is an increased chance of the stock falling below the specified strike price.

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Sandhill Inc. has the following information related to an item in its ending inventory. Packit (Product # 874) has a cost of $76
Sladkaya [172]

Answer:

$64

Explanation:

The computation of final lower-of-cost-or-market inventory value is given below:-

Ceiling LCM = Estimated selling price - Cost to disposal or NRV ($68)

Floor LCM = NRV - Normal profit

= $68 - $4

= $64

Conditions: 1)When the cost of replacement is greater than the LCM ceiling then the LCM ceiling is considered the market cost.

2)If the cost of replacement is greater than floor LCM then floor LCM is considered to be the market cost

So, second condition is satisfied.

The market value is $64, cost is $76.

Lower of cost or market rate is $64

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Jeb separated people who wanted aâ high-quality car from people who wanted aâ low-priced car, then saw whether different charact
KATRIN_1 [288]
<span>Jeb was defining segments using DEMOGRAPHIC considerations.

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3 0
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andrezito [222]

Answer:

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