Answer:
$400
Explanation:
From the question, there is a butterfly spread when a trader buys 100 options with strike prices $60 and $70 and sells 200 options with strike price $65.
The maximum gain is the point where both the stock price and the middle strike price are equal, i.e. equal to $65. At that point, the options payoffs are respectively $500, 0, and 0. By implication, the total payoff is $500.
The set up cost of the butterfly spread can be calculated as follows:
Setup cost = ($11×100) + ($18×100) – ($14×200)
= 1,100 + 1,800 – 2,800
Setup cost = $100
Net gain = Options payoffs – Setup cost = $500 - $100 = $400
Therefore, the maximum net gain (after the cost of the options is taken into account) is $400.
Answer:
I would say A.
Explanation:
Because I looked it up.... HEH HEH.... -_-
Answer:
Date Account titles and Explanation Debit Credit
Bad Debt Expense $8,400
Allowance for doubtful account $8,400
($9,600 credit required - $1,200 already existing)
(To record bad debt expenses)
Particulars Amount
Account receivables $307,200
Less: Allowance for doubtful account <u>$9,600</u>
Net amount of accounts receivable <u>$297,600</u>
Answer:
A. make sure government programs can function properly.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
The main reason for government spending such as building public schools, power supply, water, development of infrastructures, etc., is to ensure and facilitate the proper functioning of all government programs.
Hence, the government of a particular country is saddled with the responsibility of spending on basic projects or programs so as to create a sustainable, growing and efficient economy for its citizens.
Answer:
Tax Liability: $5,840
Marginal Tax Rate: 12%
Average Tax Rate: 11%
Explanation:
*The tax liability is determined using the tax rate for 2019 tax bracket.
For married couple filling jointly, the tax rates for taxable income of $51,900 are:
Tax Rate Income Bracket
10% $0 – $19,400
12% $19,401 – $78,950
So the tax liability will be:
10% * $19,400 = $1,940 (first $19,400)
12% * $32,500 = $3,900 (Balance of $32,500)
Total tax liability = $5,840.
*Marginal tax rate is the tax rate paid on the last unit of income, the last dollar. In this case, the last dollar was taxed at 12%. Hence the marginal tax rate is 12%.
*Average tax rate is the proportion of taxable income that is to be paid as tax. It is derived by dividing the tax liability by taxable income.
Average tax rate =<u> $5840</u>
$51,900
Average tax rate =11.2524%
Average tax rate = 11% (rounded up to whole figure)
