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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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Prove you know what diminishing marginal utility is by creating an example of your own. Your example
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Hi there, I'm not answering this question, sorry.

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transactional leadership

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Those who work directly on the product to convert raw materials into a finished product are known as ____.
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3 years ago
Norma Smith is the controller of Bramble Corporation and is responsible for the preparation of the year-end financial statements
melisa1 [442]

Answer:

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6 0
3 years ago
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