The answer is d. For example you may pay a fixed rate of $300 a month for rent for a place to operate your business. Whether you produce an output of 0 or 12000 units (the level of activity), you will pay $300 a month regardless. This is a fixed cost.
Answer:
$200
Explanation:
Given that,
Price of a stock on February 1 = $48
Trader sells = 200 put options
Strike price = $40
Option price = $2
Options are exercised when the stock price = $39
Net profit (Loss):
= Stock price - Strike price + Premium
= $39 - $40 + $2
= $1
The net gain for one put option is $1.
Therefore, the total net gain for 200 put options is as follows:
= 200 × $1
= $200
Hence, the trader's net profit is $200.
Answer:
The correct answer is the letter b. “The cost of goods sold to be understated.”
Explanation:
In calculating its indirect profit rate, Brady Company no longer included a cost component. By dividing the total cost by the products sold, the cost of each individual product will be underestimated, this will underestimate all the production sold, meaning the costs of the products will appear to be lower than they really are, and your profits will appear to be higher than they really are.
Answer:
The correct answer is subprime mortgages.
Explanation:
Subprime mortgages are loans that are provided to those individuals who have low credit scores. These individuals do not qualify for conventional mortgages because of low credit score. They may have a high debt to income ratio or other signs showing a higher risk of default. A higher interest rate is charged on these loans.
Defaults on subprime loans have been blamed for the financial crisis of 2008.