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makvit [3.9K]
3 years ago
8

You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of th

e stock is $50 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes: Wildwood Corp Underlying Stock price: $50.00 Expiration Strike Call Put June 45.00 8.50 2.00 June 50.00 4.50 3.00 June 55.00 2.00 7.50 Ignoring commissions, the cost to establish the bull money spread with calls would be ________. Group of answer choices
Business
1 answer:
lys-0071 [83]3 years ago
3 0

Answer:

650

Explanation:

A call option is an option to buy a product or asset at a stated price at a later date. The risk of call option is capped at premium for buying the option. Wildwood corporation will incur cost of 650 to establish the bull money spreads with calls.

8.5 +4.5 = 13

13 * $50.00 = $650

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Garnet Corporation is considering issuing risk-free debt, or risk-free preferred stock. The tax rate on interest income is 35%,
adell [148]

Answer:

Explanation:

a) investors wil receive 6% x ( 1-0.35)

= 3.9% risk free debt  after tax.

After  tax  return from risk free  preferred stock earnings must be equal.

to evaluate the cost of capital  fro preferred stock = 3.9%/(1-0.15)

                                                                                    = 4.59%

b) the after-tax debt cost of capital = 6% x (1- 0.40)

= 3.60%.

therefore, 3.60% is cheaper than the 4.59% preffered stoch cost per capital

c)  r* = 1 - [{(1 - 0.40)(1 - 0.15)} / (1 - 0.35)] = 1 - 0.7846 = 0.2154, or 21.54%

Hence, 4.59% x (1 - 0.2154) = 3.60%

4 0
3 years ago
13) In the following expression, Total: [Rate] * [Hours], "Total" is a(n) ________.
Leno4ka [110]

Answer:

B. Group By operator

Explanation:

Hope this helps and have a nice day :)

3 0
2 years ago
Read 2 more answers
Race One Motors is an Indonesian car manufacturer. At its largest manufacturing​ facility, in​ Jakarta, the company produces sub
AVprozaik [17]

Answer: 666.13 units

Explanation:

Given that,

Production Per day (P) = 295

Usage rate of sub-components (D) = 12,700 per year (250 working​ days)

Holding cost (H) = $2 per item

Ordering costs (S) = ​$29 per order

d = \frac{D}{250}

d = \frac{12,700}{250}

         = $50.8

[1-\frac{d}{P}]=[1-\frac{50.8}{295}]

                          = 1 - 0.1722

                          = 0.8278

                          = 0.83

Economic\ production\​ Quantity=\sqrt{\frac{2\times D\times S}{H\times[1-\frac{d}{P}] }}

Economic\ production\​ Quantity=\sqrt{\frac{2\times 12,700\times 29}{2\times 0.83 }}    

=\sqrt{443,734.94}

= 666.13 units

3 0
3 years ago
Cost accumulation is the determination of the dollar amounts of direct materials, direct labor and overhead costs, and cost meas
SashulF [63]

Answer:

true......................

5 0
3 years ago
ristan conducts service and installation visits for a cable company. He uses an online system to access a client's history and u
makvit [3.9K]

Answer: customer relationship management

Explanation:

Customer relationship management has to do with the way organizations relate with their customers in order to meet their needs and satisfy them better.

From the question, we are informed that the worker uses the customer relationship management to access a client's history and updates the system with results from all interactions.

8 0
3 years ago
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