A) Each of these assertions is true A person who owns a put option might think about exercising the option, The put option has an intrinsic value of $3.16, The put option has a time value of $3.73.
<h3>What is the Put Option?</h3>
A put option, also known as a "put," is a contract that gives the buyer of an option the right, but not the obligation, to sell a certain amount of an underlying security—also known as selling short—at a predetermined price within a predetermined time frame. The strike price is the predetermined price at which the buyer of the put option can sell the underlying security.
The underlying assets of put options can be stocks, currencies, bonds, commodities, futures, or indexes. A call option, on the other hand, grants the holder the right to purchase the underlying security at a predetermined price either on or before the option contract's expiration date.
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Answer:
b) the Fed will likely increase interest rates
Explanation:
The situation of increased employment and salaried has caused an increase in demand. At the moment, demand outweighs supply. It appears that the economy has too much money in circulation. Shortly, the rate of inflation will go up, leading to an increase in the prices of goods and services.
The Fed should raise interest rates to counter the expected inflation. The economy is expanding rapidly, which is not sustainable. An increase in interest rate will reduce the money supply in the economy, thereby averting a potential rise in the cost of living due to a general increase in prices.
Answer:
c. $4,000
Explanation:
Depreciation expense is the appropriate portion of a company's fixed asset's cost that is being used up during accounting period. Under straight-line method, depreciation expense is calculated by formula:
Straight-Line Depreciation Expense = (Cost − Residual Value)
/Useful Life of the Asset
For year 2, depreciation expense = ($25,000-$5,000)/5 = $4,000
Noted:
Depreciation Expense is different from Accumulated depreciation. Accumulated depreciation is the total amount of depreciation expense for an fixed asset that is recorded on the balance sheet. In this situation, the Accumulated depreciation after 2 years is:
Depreciation expense in year 1 + Depreciation expense in year 2 = $8,000
Answer: The answer is e. $264,000 of net cash provided.
Explanation:
Marjorie Company
Statement of cash flows
Purchase of equipment ($260,000)
Proceeds from sale of equipment 87,000
Purchase of land (91,000)
Net cash flows from investing activities $264,000
Consideration<span> is the concept of legal value in connection with </span>contracts, so option <span>A. The list of people who are legally authorized to negotiate the contract !</span>
