Answer:
A) according to put call parity:
price of put option = call option - stock price + [future value / (1 + risk free rate)ⁿ]
put = $6.93 - $125 + [$140 / (1 + 5%)¹/⁴] = $6.93 - $125 +$138.30 = $20.23
B)
you have to purchase both a put and call option ⇒ straddle
the total cost of the investment = $6.93 + $20.23 = $27.16, this way you can make a profit if the stock price increases higher than $125 + $20.23 = $145.23 or decreases below than $125 - $20.23 = $104.77
Answer:
Part 1:
Account Debit Credit
Cash $11,500
Notes Payable $11,500
(On 12% Interest)
Part 2:
Account Debit Credit
Interest Expense $690
Interest Payable $690
Part 3:
Interest Expense = $690
Interest Payable = $690
Explanation:
Part 1:
July 1, 2018 Midshipmen borrows $11,500 from Falcon Company.
Account Debit Credit
Cash $11,500
Notes Payable $11,500
(On 12% Interest)
Part 2:
From july 1,2018 to Dec 31,2018, Interest expense has accumulated for 6 months. Since each month the interest is 1% so For each month interest is
($11500 * 1% = $115).
For 6 months Interest expense = $115 * 6
For 6 months Interest expense = $690
General Entry:
Account Debit Credit
Interest Expense $690
Interest Payable $690
Part 3:
Same as Part 2 i.e
From july 1,2018 to Dec 31,2018, Interest expense has accumulated for 6 months. Since each month the interest is 1% so For each month interest is
($11500 * 1% = $115).
For 6 months Interest expense = $115 * 6
For 6 months Interest expense = $690
Interest Expense = $690
Interest Payable = $690
To bring in a test group to try out the products before they are released to the general public so that you can work out any issues that the product may contain.
Answer:
have you tired looking on ebay
Answer:
The correct answer is A. Market Segmentation.
Explanation:
The process of dividing the potential market into sub-markets with common needs and features is called market segmentation. The segments created are composed of consumers who will respond similarly to marketing strategies and who share simialr traits.
For example, common characteristics of a market segment include interests, lifestyle, age, gender, etc. Common examples of market segmentation include geographic, demographic, psychographic, and behavioral.