Answer:
a. Profit to an investor who buys call for $4
a. $ -4
b. $ -4
c. $ -4
d. $ 1
e. $ 6
b. Profit to an investor who buys call for $6.5
a. $1.5
b. $6.5
c. $ -1.5
d. $ -3.5
e. $ -8.5
Explanation:
The call option is a derivative in which an investor buys an option to buy the asset at a certain price. The value of the call option is determined by maturity. The buyer of call option can buy an asset at a strike price before expiration date.
If the investor buys the call option for $4 then the $4 is an expense for the investor. The value of call will be -4 unless the stock price is above $50.
If the investor buys the call option for $6.5 then the $6.5 is an expense for the investor. The value of call will be -6.5 unless the stock price is below $50.
Answer:
Option 1 - the opportunity cost of leisure decreases as wages decrease.
Explanation:
The labour supply curve of any occupation will always be upward sloping because when wages, (the opportunity cost of leisure) rises, the more hours of leisure a staff will relinquish to do more work.
The opposite of this is true as seen in option 1 of the question.
Opportunity costs will reduce with a consequent reduction in average wages. When fewer people want to retain their employment due to decrease in wage rates, it would lead to a fall in demand for leisure.
Answer:
Garrett Co. cash flows from operating activities is $61,000.
Explanation:
Garrett Co.
Statement of cash flows (extract)
Net income $56,000
Add Loss on disposal of equipment 5,000
Cash flows from operating activities $61,000
Loss on disposal of the equipment was calculated as Proceeds - net book value, that is $15,000 - $20,000.
Note that purchase of equipment belongs to investing part of the cash flows while proceed from stock issuance and dividend payment belong to financing part of the cash flows
Indicators that the local currency is also the functional currency include all of the following except the parent typically provides the financing or provides a guarantee.
A functional currency is one that is utilized in the main economic setting in which a company conducts business. This is the setting in which an entity generates and spends money most frequently. When defining the functional currency of an entity, the following key considerations should be taken into account:
The principal currency influencing retail prices (usually the currency in which prices are denominated and settled).
The money of the nation whose laws and competition have the biggest impact on retail pricing.
The principal currency affecting labor expenses and other costs of goods sold (usually the currency in which prices are denominated and settled).
The currency in which an entity keeps its operating receipts and the currency in which debt and equity instruments are issued are less important deciding factors.
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Answer:
Knowledge workers
Explanation:
Business intelligence (BI) refers to the application and practice of collecting and analyzing multi sources (such as suppliers, customers, partners) of information in-other to make better business decisions.
A knowledge worker is one that uses business intelligence with personal experience to make strategic business decisions valuable to the company.
