Answer:
To create the collar, the customer would: <u>buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call.</u>
Explanation:
The meaning of a "collar" is that a put is bought at a strike price that is less than the price of the underlying instrument (this implies that a floor has been put on the price of the instrument); and that a call is disposed at a strike price which is higher than the price of the underlying instrument (this indicates that a ceiling above which the instrument will be called away has been created).
When a collar is put on the price, it indicates that the customer is majorly giving a guarantee for the underlying instrument's minimum and maximum price.
This should make the net cost of the collar to be close to zero due to the fact that the two contracts are "out the money" and also because the premium paid to buy the put is offset by the premium received when the call was sold.
Therefore, since customer in the question wishes to place a collar on the position using PHLX SF FLEX options, he would <u>buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call</u> to create the collar.
Answer:
Option (D) is correct.
Explanation:
Given that,
In 2016,
Allowance for doubtful accounts = $7.2 million
Total accounts and other receivables, net = $486.6 million
In 2015,
Allowance for doubtful accounts = $9.3 million
Total accounts and other receivables, net = $520.2 million
Therefore,
Company’s current gross accounts and other receivables at the end of 2016:
= net receivable(2016) + allowance for doubtful(2016)
= $486.6 + $7.2
= $493.8
Answer:
A. $50 increase
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
The change in net cash provided by operation is shown below:
= Investment made - purchased goods on credit - paid amount
= $300 - $150 - $100
= $50
