Answer:
Out the money.
Explanation:
A PHLX Jan 80 Swiss Franc Call contract is quoted at 2 when the Swiss Franc closes at 77. The contract is out the money.
An out the money ultimately implies that an option only has an extrinsic value but no intrinsic value. The extrinsic value of an option refers to the difference between its intrinsic value and the market value (premium). An extrinsic value is affected by the volatility in the market and its time value. The intrinsic value of an asset refers to the calculated, true or real value of an asset and is solely affected by internal factors.
A call is out the money when the strike price is greater than or above the underlying price of an asset. This simply means that, it's market value (price) has fallen below its strike price.
<em>In this scenario, the market price of the call is 77 while its strike price is 80; thus, the call option is out the money by 3.</em>
Answer:
900 or 9 hundred
Explanation:
Given that :
the supply curve = P = 5 + 0.1Q
the Demand curve = P = 20 – 0.2Q
The relation of both above yields the equilibrium price and quantity .
SO;
5 + 0.1Q = 20 – 0.2Q
5 - 20 = -0.2Q - 0.1Q
-15 = -0.3Q
Q = -15/-0.3
Q = 50 hundreds of unit per day
Q = 5000 per day
So;
P = 5 + 0.1Q
P = 5 + 0.1 (50)
P = 5 + 5
P = $10
Therefore; the equilibrium price is $10
the equilibrium quantity is 5000
Similarly; the portable radio imposes $2.70 per day in noise costs on others.
∴ in order to deduce the social marginal cost curve ,w e need to shift the private marginal cost curve up by $2.70 for every unit.
Now; the social marginal cost curve will be ;
P = (5 + 2.7) + 0.1Q
P = 7.7 + 0.1Q
In order to determine the social optimum ; we relate the social marginal cost with demand curve as follows:
7.7 + 0.1Q = 20 - 0.2Q
0.1Q + 0.2Q = 20 - 7.7
0.3Q = 12.3
Q = 12.3/0.3
Q = 41 hundred unit per day
Q = 4100 per day
Recall :
P = 7.7 + 0.1Q
P = 7.7 + 0.1(41)
P = 7.7 + 4.1
P = $11.8
Finally; the equilibrium number of portable radios rented is 5000 - 4100 = 900 or 9 hundred
Answer:
c. $44,417
Explanation:
The computation of the Net cash provided by operating activities for the year is shown below
Cash flow from operating activities
Net income $44,417
Less Increase in account receivable -$5,230
Less Decrease in account receivable -$3,590
Add depreciation expense $48,113
Net cash provided by operating activities $83,710
hence, the correct option is c.
During the most recent soccer tournament made headlines. This note defines ambush marketing, details how businesses can breaking ambush marketing regulations developing marketing strategies.
Ambush advertising occurs when an organization that isn't a political tournament candidate sponsors an event (like a sporting competition or music ambush marketing festival) and engages in promotional activities in an effort to establish an association with the event or to take advantage of the event's profile without the owner's consent.
For instance, if a retailer of consumer goods on the high street published an advertisement for "World Cup WAG handbags" or "Olympic Special ambush marketing Offer: two for one sports gear," readers might assume that the company has some connection to the world Cup or the Olympics.
Because they must protect the value of their own commercial rights in tournament the event and because they may have chosen official sponsors (possibly direct competitors of the advertiser) who have paid significant sums for the exclusive rights to be formally associated with the event, event owners frequently respond angrily to ambush advertising.
Learn more about ambush marketing here
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Answer:
Recording fixed manufacturing overhead as element of the cost of plant assets constructed by a company for its own use:
a) When to exclude completely: During periods of low production activity, capitalization of fixed overhead costs would reduce the amount assigned to operational activities. This implies that profits will be overstated in some periods and understated in others.
b) When to include at the same rate as is charged to normal operations: To avoid misstatement of both plant assets and finished goods, it is important to allocate overhead costs at the same rate to plant asset construction as is done for normal operations.
Explanation:
Much of the fixed manufacturing overhead will be the depreciation costs for factory building and equipment. Sometimes, companies construct their plant assets internally. The problem arises when deciding whether to allocate fixed manufacturing overhead costs or not and when to allocate. The decision requires some thinking to decide when it is appropriate.