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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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True, but could you elaborate on this ?
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3 years ago
What is the ground clearance of the Nissan GT-R?
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Answer:

110 mm

Explanation: The Nissan GT-R has a 110 mm ground clearance.

3 0
2 years ago
Sarah and Luke each purchased $125 of merchandise from Owens Grocers on account. The terms of both sales were 1/7, n/30. Account
Tatiana [17]

Answer:

Sarah inventory $ 123.75

Luke inventory  $  125.00

Explanation:

<u>Sarah</u>

125 dollars x 1% discount = 1.25 dollars

Inventory:

125 nominal - 1.25 discount = 123.75

Sarah will enter the inventory for the price it paid to acquire it which is 123.75

<u>Luke</u>

As look paid after the discount period the inventory will be valued at nominal:

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7 0
3 years ago
The+ebit+of+a+firm+is+$300,+the+tax+rate+is+35%,+the+depreciation+is+$20,+capital+expenditures+are+$60+and+the+decrease+in+net+w
-BARSIC- [3]

Answer:

Answer:

$215

Explanation:

Eagles product has an EBIT of $400

Its tax rate is 30%

= 30/100

= 0.3

The depreciation is $16

The capital expenditures are $56

The planned increase in net working capital is $25

Therefore, the free cash flow to the firm can be calculated as follows

Free cash flow= EBIT(1-tax)+depreciation-capital expenditures- change in working capital

= 400(1-0.3)+16-56-25

= 400-120+16-56-25

= $215

Hence the free cash flow to the firm is $215

4 0
2 years ago
You were recently hired by the Andrews CEO as a consultant to evaluate the performance of the Chief Financial Officer (CFO). As
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The least effective step in this process would be to focus only on the CFO's job performance and not his inappropriate behavior in the workplace.

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Find out more about performance appraisal here:

brainly.com/question/1532968

#SPJ1

8 0
1 year ago
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