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velikii [3]
3 years ago
13

LPM company is a furniture 5 points manufacturer having a current market price of $70 per share. Mrs. Jennifer is a warrant hold

er at LPM. She can purchase 1 share of stock per warrant at a price of $74. After 2 months, the stock price of LPM has fallen to $60 per share. What is Mrs. Jennifer's exercise value? *
Business
1 answer:
nikklg [1K]3 years ago
8 0

Answer:

-$14 per share

Explanation:

The exercise value is the monetary value of Mrs. Jennifer's call option if she was going to exercise it. The exercise value is calculated by subtracting the current stock price from the strike price = $60 - $74 = -$14.

Since no one would exercise a stock warrant knowing that they will lose money, we can expect that Mrs. Jennifer does not exercise her call option. If she really wanted to purchase a stock from LPM it would be cheaper to buy it at its current market price.

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joja [24]

Answer:

The correct answer is option A

a. cure the defect.

Explanation:

A problem that can be corrected based on the agreed terms and conditions by a seller or buyer is a curable defect.

6 0
3 years ago
Collier/Evans defines servicescape as "all the physical evidence a customer might use to form an impression."
Slav-nsk [51]

Answer:

Walmart

Explanation:

The serviescape of a business includes the business appereance, layout, structure, signage, and equipment.

Walmart is a retail superstore that specializes in cheap consumer goods. The layout of the Walmart, is accordingly, spacious in order to accommodate as many products as possible.

The colors blue, yellow and white dominate the sings in the store, because those are the colors of the corporate brand. In the ailes, prices are written with very large fonts so that any customer can easily read them. This has to do with the fact that Walmart has established itself as a cheap option.

The greeters at Walmart are part of the corporate culture, but also a means to prevent shoplifting.

7 0
3 years ago
1. Over the past year, a customer has surrendered, in whole or in part, three life insurance policies. If part of a money launde
Thepotemich [5.8K]

Answer:

It represents the Integration stage

Explanation:

Money laundering is an illegal chain of activities done by individuals or corporate bodies to change the status of money gotten through a criminal activity into legitimate money. This chain of activities starts with the Placement stage then transforms into the Layering stage, then ends when it is already integrated into the legitimate financial system through the Integration stage.

After the money launderer conceals the illegal money through bank deposits or purchasing a life insurance policy at the Placement stage, the launderer then proceeds to further break the money into smaller amounts to evade suspicion by numerous transactions and bank deposits at the Layering stage, which is then ended by partial or whole surrenders of life insurance policies to make it now legitimate money.

3 0
2 years ago
In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is l
Margarita [4]

Answer: Unilateral contract.

Explanation:

A unilateral contract is a contract in which promise to fulfill a requirement is made only in one direction, when only the offeror makes a promise and the offeree is on the receiving end of the promise. In insurance the insurer is the only one who makes a promise while the insured is the one receiving the offer(and can break from the agreement at any time).The insurer is the offeror while the insured is the offeree.

3 0
3 years ago
Lillian sees a store sign that says cl_ ed. due to the gestalt law of _______, lillian knows the store is closed even though the
Jobisdone [24]
<span>This is the gestalt law of closure. Gestalt means a whole comprised from many pieces that takes on a meaning larger than itself. This refers to Lilian's process of assembling the word- it is composed from letters, but takes on an independent meaning. The law of closure is when this happens anyway even when we don't have all the information.</span>
4 0
3 years ago
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