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3 years ago

Both a call and a put currently are traded on stock XYZ; both have strike prices of $45 and expirations of 6 months.

Business

1 answer:

pychu [463]3 years ago

6 0

Answer:

a. Profit to an investor who buys call for $4

a. $ -4

b. $ -4

c. $ -4

d. $ 1

e. $ 6

b. Profit to an investor who buys call for $6.5

a. $1.5

b. $6.5

c. $ -1.5

d. $ -3.5

e. $ -8.5

Explanation:

The call option is a derivative in which an investor buys an option to buy the asset at a certain price. The value of the call option is determined by maturity. The buyer of call option can buy an asset at a strike price before expiration date.

If the investor buys the call option for $4 then the $4 is an expense for the investor. The value of call will be -4 unless the stock price is above $50.

If the investor buys the call option for $6.5 then the $6.5 is an expense for the investor. The value of call will be -6.5 unless the stock price is below $50.

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The perimeter of a rectangle with a width x and a length that is four times the widthA nursery has $55,000 of inventory in dogwo

nalin [4]

The question is incorrect. The correct question is as follows,

A nursery has $55,000 of inventory in dogwood trees and red maple trees. The profit on a dogwood tree is 28% and the profit on a red maple tree is 17%. The profit for the entire stock is 20%. How much was invested in each type of tree?

Answer:

The investment in Dogwood trees is $15000.

The investment in red maple trees is = $40000

Explanation:

To calculate the investment in each type of tree, we will say that x was invested in dogwood trees and the investment in red maple trees was 55000-x.

The profit on the entire investment is calculated as the weighted average of the profit on dogwood trees and profit on the red maple trees. The formula for overall profit can be written as follows,

Overall profit = Investment in dogwood / total investment * profit % on dogwood + Investment in red maple / total investment * profit % on red maple

0.2 = x / 55000 * 0.28 + (55000 - x) / 55000 * 0.17

0.2 = 0.28x / 55000 + (9350 - 0.17x) / 55000

0.2 = 0.28x + 9350 - 0.17x / 55000

0.2 * 55000 = 0.11x + 9350

11000 = 0.11x + 9350

11000 - 9350 = 0.11x

1650 / 0.11 = x

x = $15000

If x is $15000, this means that the investment in Dogwood trees is $15000.

If x is $15000, this means that the investment in red maple trees is 55000 - 15000 = $40000

4 0

3 years ago

Rodriquez Company budgeted the following sales in units: January 30,000 February 20,000 March 40,000 Rodriquez's policy is to ha

chubhunter [2.5K]

Answer:

24,000 units

Explanation:

Given:

Budgeted sales for January = 30,000

Budgeted sales for February = 20,000

Opening inventory in January = 7,500

Desired ending inventory = 20% of sales in February

= 0.2 × 20,000

= 4,000 units

Units required in January = 30,000 + 4,000

= 34,000 units

Units to be produced in January = 34,000 - opening inventory

= 34,000 - 7,500

= 26,500 units

Budgeted sales for February = 20,000

Budgeted sales for March = 40,000

Opening inventory in February is closing inventory of January = 4,000

Desired ending inventory = 20% of sales in March

= 0.2 × 40,000

= 8,000 units

Units required in February = 20,000 + 8,000

= 28,000 units

Units to be produced in February = 28,000 - opening inventory

= 28,000 - 4,000

= 24,000 units

5 0

3 years ago

Lagyan ng angkop na bilang ang

Liono4ka [1.6K]

Answer:

which language is this? or is it just nonsense?

5 0

3 years ago

When economists say that a good is non-rival in consumption, they mean that:____.

juin [17]

Answer: When economists say that a good is no -rival in consumption, More than one person can enjoy the good at the same time

A good is excludable if someone can be prevented from using it. A good is rival in consumption if one person's use reduces others' ability to use the same unit of the good. Markets work best for private goods, which are excludable and rival in consumption. Markets do not work well for other types of goods.

5 0

3 years ago

Supplies are assets until they are used. When they are used up, their costs are reported as expenses. The costs of unused suppli

mezya [45]

Question Completion:

Describe the accounting treatment of Supplies Expenses.

Answer:

Supplies Expenses are debited while the Supplies account is credited with the supplies expenses.

Explanation:

This accounting treatment of Supplies Expenses reduces the balance of the Supplies account by the amount of supplies used during the period. Thus, what is left in the Supplies account is the cost of the unused supplies at the end of the accounting period. The treatment also accords with the accrual concept, which requires that expenses are matched to the revenues that they generate in the period.

7 0

3 years ago