1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aniked [119]
4 years ago
6

You purchase one MMM July 129 call contract (equaling 100 shares) for a premium of $21. You hold the option until the expiration

date, when MMM stock sells for $141 per share. You will realize a ______ on the investment.
Business
1 answer:
mel-nik [20]4 years ago
7 0

Answer:

There is loss of $900 on investment.

Explanation:

The purchase of 1 MMM July 129 call contract at premium  = $21

Since it is given that it is held unit the expiration date.

The selling price of MMM stock = $141 per share.

Total number of shares = 100

Total amount paid for share (purchase price) = 129 + 21 = $150

Loss or profit = Market price on expiration date- purchase price

              =141-150

              = - 9

Total loss =  9 × 100

           =900 loss

You might be interested in
Over a period of several decades, coffee consumption declined from 75% of the adult population in 1962 to 49% in 2004. then, it
adelina 88 [10]
<span>A good orientation would have explored the changes in these usage trends. By doing this, they could have figured out how to best market to these customers and maximize their profits. Even though there were drops in consumption, understanding and targeting those who still did consume would have borne the most success for those companies that undertook these steps.</span>
6 0
3 years ago
Drag each credit plan to its description.
GarryVolchara [31]

Answer: (1)revolving credit, (2)installment account,& (3)charge card

Explanation:

(1)Borrowers have a fixed credit line that is replenished as the outstanding balance is paid off.



(2)Borrowers have to make regular payments under fixed terms.



(3)Consumers can shop using credit at specific locations.

6 0
3 years ago
Read 2 more answers
Why MERCOSUR is trade diversion and what are the impacts of MERCOSUR on firm operations?
poizon [28]

Answer:

MERCOSUR may have made trade more difficult.

Explanation:

It is a trade divergence due to numerous reasons. It influences nations outside the association since they can't offer to those nations as effectively. The idea was to make a worker's union that would enable every nation to get off their feet and strengthen one another. Yet, it winded up harming one another and different nations for the reasons that it made the trade even more difficult than it was before. So, the impacts of MERCOSUR on firms operation are negative; it made trade more difficult, especially with other countries.

5 0
3 years ago
Two of the major advantages of a pass-through entity are that investors can _______ and _______. (choose two correct answers)
prisoha [69]

Two of the major advantages of a pass-through entity are that investors can assume the tax deductions and losses earnings.

An option to lower taxable income is a tax deduction. A standard deduction is a single, predetermined deduction. Higher-income taxpayers frequently have considerable deductible expenses, such as state and local taxes paid, mortgage interest, and charitable contributions, which is why itemized deductions are popular.

Any expense that is deemed "ordinary, necessary, and reasonable" and aids in the revenue generation of a firm is tax deductible. Usually, it is subtracted from the business's income before taxes.

Learn more about tax deduction here

brainly.com/question/17395659

#SPJ4

7 0
2 years ago
1. [6 points] Consider the Ricardian model with two economies (Mexico and the U.S.A.) and two commodities (goods and services).
Mrrafil [7]

Answer:

The Ricardian Model as described by David Ricardo is a model which explains  trade between two countries and the products which they are most likely to export. The answer to your problem is given below.

Explanation:

(a) Calculate the autarky price of Goods in both countries: pG, and p*G.

The autarky price here means a price at which there will be no trade between the two countries:

Data:

The marginal product of labor in service industry of home country:

MPLS = 1

The marginal product of labor in goods industry of home country:

MPLG = 1

The marginal product of labor in service industry of foreign country:

MPLS* = 1/4

The marginal product of labor in goods industry of foreign country:

MPLG* = 1/2

The price of services in home country is:  

Ps = $2

The price of goods in foreign country is:

Ps* = 12 Pesos

As per current exchange rate, the value of 12 Pesos is equal to $0.63.

source: https://mxn.currencyrate.today/usd/12

Thus,

Ps* = $0.63

The autarky price of goods in both countries are calculated as follows:

Ps/PG = MPLS/MPLG

2/PG = 1/1

PG = $2

And,

Ps*/PG* = MPLS*/MPLG*

0.63/PG* = (1/4)/(1/2)

PG* = $1.26

7 0
3 years ago
Other questions:
  • On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconve
    11·2 answers
  • What is the name of the technique used to open the airway of an unresponsive not-breathing guest?
    15·2 answers
  • You are an entrepreneur starting a biotechnology firm. If your research is​ successful, the technology can be sold for $ 30$30 m
    12·1 answer
  • If you've been a victim of identity theft, what should you do after contacting the company that reported the suspicious charge a
    12·1 answer
  • Monetary neutrality is the idea that money is neutral in the –. it is a means of exchanging, tracking, and storing value, but is
    6·1 answer
  • The tone a writer takes is referred to as the writing _____.
    9·1 answer
  • A random sample of records of sales of homes from February 15 to April 30, 1993, from the files maintained by the Albuquerque Bo
    7·1 answer
  • There are two FICA taxes withheld from your paycheck: Social Security (6.2%) and Medicare (1.45%). Your gross pay for this month
    12·1 answer
  • Your creditworthiness is measured by a number called a.
    14·1 answer
  • If all of your organization's data is centralized in a small number of data centers, than focusing security on perimiter defense
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!