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Sladkaya [172]
4 years ago
11

"At that time, the market price of ABC is $44. If the market rises to $58 and the call is exercised (the put expires out the mon

ey), the gain or loss is:"
Business
1 answer:
steposvetlana [31]4 years ago
7 0

Answer:

600 loss

Explanation:

The computation of the gain or loss is shown below:

Since on Jan, there is a put option of 45 at $3 and the market rises to $58

So it losses by 13 points i.e

= 45 - 58

= 13

Now the total premium points collected is of 7 i.e

= 4 + 3

= 7

So, the remaining points left is

= 13 - 7

= 6

So for 6 points, the net loss is $600

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You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?
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Consider a hypothetical economy in which only computers and shoes are produced and in which computer production is capital inten
aksik [14]

Answer:

B) higher in the computer industry

Explanation:

Two industries are given: computer and shoe industry.

it is given in the question that the computer industry is more capital intensive than the shoe industry. which means that the computer industry involves more investment than the shoe industry. Hence, if we calculate the capital and labor ratio then we get a high capital ratio for the computer industry because it includes high investment than shoe industry

6 0
3 years ago
You were hired as a consultant to restructure operating capital. The recommended goal is for the firm to have a capital structur
Komok [63]

Answer:

The WACC is 8.66%

Explanation:

The WACC or weighted average cost of capital is the cost to firm of its capital structure which can have 3 components namely debt, preferred stock and common stock. We take the weighted average of these components and their respective costs to calculate WACC. Furthermore, we take the after tax cost of debt for WACC calculation and that is why we multiply the cost of debt by (1-tax rate).

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

WACC = 0.33  *  0.065  *  (1-0.28)  +  0.08 * 0.06  +  0.59 * 0.1125

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3 0
4 years ago
A sales invoice included the following information: merchandise price, $11,100; terms 1/10, n/eom, FOB shipping point with prepa
olga2289 [7]

<u>Assuming that a credit for merchandise returned of $1,000 is granted prior to payment and the invoice is paid within the discount period, the amount of cash that should be received by the seller is (a) $10399</u>

<u />

Explanation:

In the first step we will deduct the credit for merchandised return from the merchandise price

=($11,100-1$000)=$10,100 -------(a)

Then we multiply the result by terms (i.e 1/10=.01)

=($10,100*.01)=$101----------(b)

<u>Then we subtract the result of equation a with equation b</u>

($10,100-$101)=$9,999

Then we add the prepaid freight charges to the result obtained

($9,999+$400)=$10399

<u>Answer: </u>$10399

7 0
3 years ago
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