Answer:
d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.
Explanation:
A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.
A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.
Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid
wherein CMP= Current Market Price
A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.
Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.
Answer:
I am from Long Island but live in NC
Explanation:
Answer:
1. Positive Externality ; 2. Negative Externality ; 3. Positive Externality.
Explanation:
Externalities are benefits or harms to other parties , without payment received or made for them respectively.
Positive Externalities : Externalities positively effecting others. Eg-Education
Negative Externalities : Externalities positively effecting others . Eg-Pollution.
1. Bridal Shop's signage facelift creates benefit for other strip mall businesses also (better business visibility), without former receiving money & latter paying money.
2. Local church celebration creates benefit for all attendants (recreational benefit) ,without former receiving money & latter paying money.
3. Local School bus ramp construction creates harm for commuters of that area (traffic inconvenience) , without former paying money & latter receiving money
Answer:
(a) INDICATOR OF FRAUD
Explanation:
The reason is that the supervisor has an outside business setup related to the department's setup which gives rise to a conflict of interest.
Calculation of Commission earned:
We are given that Joan sells new cars at a local dealership and she receives a 15% commission on profit.
So we can say that :
Commission earned = 15% * Total profit
Last week she sold 9 cars for the total of $10,870 dealer profit
Hence Commission earned shall be calculated as follows:
Commission earned = 15% * Total profit
Commission earned = 15% * 10870 = $1,630.50
Hence, the Commission earned by Joan is <u>$1,630.50</u>
