Answer: $200 loss
Explanation:
When you purchase an option, you assume that the share price will gain a higher amount that the premium paid. In this case, it did not.
For this put option, you paid a premium of $500 ($5 * 100)
This is because there are 100 shares in each put.
The stock rises to $123 and you decide to sell at this price, you will achieve $300 increase on the shares:
(123 - 120) * 100 = 300
The shares had a gain of $300 but you paid $500, leaving you with a loss of $200 on the investment.
Answer:
Economic expansion
The economy is expanding which means that people have access to higher wages. This will enable them to save more.
- More demand for funds among borrowers
As the economy is expanding, people will borrow to consume more as well as to invest which will lead to a higher demand for borrowed funds.
- Increase in price of products
With more people able to afford goods and services, prices will increase as there is now more demand for those goods.
Economic recession
With the economy shrinking, companies will be making less profit and will have to layoff workers to reduce their costs.
- Increase in government borrowing
In a recession, the Government will have to spend more to prop up the economy like the US Government did during this pandemic by providing stimulus packages. This spending is supported by borrowing.
Answer:
<u><em>Loaded-up fund:</em></u>
1-year: 1,055
3-year: 1.174,24
10-year: 1,708.14
<em><u>Economy Fund:</u></em>
1-year: 1,040.81
3-year: 1,186.06
10-year: 1,873.63
Explanation:
<u>Loaded-up fund:</u>
0.75% + 0.75% = 1.5%
7% return - 1.5% = 5.5%
after a year:
1,000 x 1.055 = 1,055
after three years:
1,000 x 1.055^3 = 1.174,24
after ten years:
1,000 x 1.055^10 =1,708.14
<u>Economic Fund:</u>
discounting the front-end load
1,000 x (1 - 0.025) = 975
then:
7% - 0.25% = 6.75%
after a year:
975 x 1.0675 = 1.040,81
after three years:
975 x 1.0675^3 = 1.186,06
after ten years:
975 x 1.0675^10 =1,873.63
Answer:
- Cash account
- Revenue Account
Explanation:
The tickets are sold on a cash basis. The transaction resulted in an increase in cash to the business. Therefore, the cash account will be affected. An increase in cash is debited to the cash account. $4500 will be debited
The transaction involved the selling of tickets, which is a business activity that generated revenue. The sales or revenue account will be affected. The revenue will increase by $4500. An increase in revenue is credited.
Answer:
Wages, Rent, and Dividends; Steve would pay the government more in the form of taxes
Explanation: