Answer:
D) Sold a call option
Explanation:
From the question, we are informed about Steve, who has an option with a payoff profile that depicts a line that is constant at zero up until some point after which the line slopes downward. In this case the type of action did Steve take to obtain this profile is Sold a call option.
a call option can be regarded as a kind of derivatives contract that enable the a call option for those that want to purchase stock or financial instrument the right to buy it at a specific price but not obligation. When a call option is sold, then the buyer is given the opportunity to buy the stock at a particular price with expeiration. The price is known as "strike price".
Answer:
Please find the question and its complete solution in the attached file.
Explanation:
<span>If an economy has just suffered a serious recession, we can conclude that the unemployment rate is high. After the recession when the real gdp is expanding, we can safely assume that more workers are needed to produce the gdp, which means that the unemployment rate will drop.</span>
Answer:
a. Allowance for doubtful accounts = Unadjusted balance + Adjusted balance
= $10,500 + $110,000
= $120,500
b. i)The adjusted balance of accounts receivable shall be $2,150,000(adjusted debit balance)
ii) Adjusted balance = Bad debt expense - Unadjusted balance
= $120,500 - $10,500
= $110,000 (Adjusted credit balance)
iii) Adjusted bad debt expense = Unadjusted balance of allowance for doubtful accounts + Adjusted balance allowance for doubtful accounts
= $10,500 + $110,000
= $120,500 (Adjusted debit balance)
c. Net realizable value = Gross accounts receivable - Allowance for doubtful accounts
= $2,150,000 - $110,000
= $2,040,000
Central Banks, Retail Banks, Commercial Banks, Shadow Banks, Investment Banks, Cooperative Banks, Credit Unions.