Answer:
-$2,050
Explanation:
Given that,
Number of options sold = 5
Option price per share = $1.90
Exercise price = $45 per share
Market price = $39 per share
As the exercise price is greater than the stock market price, so the purchaser of the put option will exercise the option,
Lot size = 100 shares
Therefore, the loss on this investment is calculated as follows:
= -{[(Exercise price - Market price) × Number of options sold] - (Option price × Number of options sold)} × Lot size
= -{[($45 - $39) × 5] - ($1.90 × 5)} × 100
= -$2,050
Based on the value of Baldwin Corp's existing inventory, the dollars of additional revenue that would have been earned is $19,923,000.
<h3>What amount of dollars of additional revenue would Baldwin have earned?</h3>
The dollars of additional revenue that a company would have earned is the value of the existing inventory because inventory is assumed to be sold at cost.
Baldwin's existing inventory was valued at $19,923,000 so the dollars of additional revenue would be the same amount of $19,923,000.
Full question is:
Baldwin corp. ended the year carrying the most inventory of $19,923,000. calculate Baldwin corp.'s dollars of additional revenue (in dollars) if all existing inventory were sold at the current prices.
Find out more on the effects of existing inventory at brainly.com/question/24868116.
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Answer:
The present value of the contract is 0.5% higher if the rent is paid at the beginning of the month. That is equal to $11.28 for every $100 of rent.
Explanation:
if the rent is paid at the beginning of the month, the present value of the lease contract will be:
PV = monthly rent x PV annuity due factor
we are not given the monthly rent, but we know the PV annuity due factor for 0.5% and 24 periods = 22.67568
if the rent is paid at the end of the month, the PV = monthly rent x PV ordinary annuity factor
the PV ordinary annuity factor, 0.5%, 24 periods = 22.56287
assuming that the rent is $100 (just to calculate a %), the PV of an annuity due = $2,267.57
the PV of an ordinary annuity = $2,256.29
the difference between them = [($2,267.57 / $2,256.29) - 1] x 100 = 0.5%
Answer:
He will have to come up with a bigger down payment.
His monthly payments will be higher.
Good luck:)
Net Present Value is the difference between the present value of cash flows and the initial investment.
Net Present Value = Present Value of cash flows - Initial Investment
The following image shows the Net Present value of the cash flows:
Net Present Value = $122,142 - $120,000
Net Present Value = $2,142
