1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alina1380 [7]
3 years ago
9

Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $.05 per unit. A pound opti

on represents 31,250 units. Assume that at the time of the purchase, the spot rate of the pound is $1.51 and continually rises to $1.62 by the expiration date. The highest net profit possible for the speculator based on the information above is:
Business
1 answer:
scoray [572]3 years ago
7 0

Answer:

The highest net loss of $1,562.50 (i.e. – $1,562.50)

Explanation:

This can be calculated using the following equation:

Highest net profit possible = British pounds put option price per unit × Units of the pound option

                                                = $0.05 x 31,250

Highest net profit possible = $1,562.50

However, based on the information provided in the question, the option will not be exercised and this will result into the highest net loss of $1,562.50 (i.e. – $1,562.50).

You might be interested in
During winter, red foxes hunt small rodents by jumping into thick snow cover. researchers report that a hunting trip lasts on av
Hatshy [7]

In this report, there are three variables being mentioned. These are:

1st variable = 19 minutes

2nd variable = 7 jumps

3rd variable = 79%

 

In this problem, I believe what we are asked to do is to identify the type of variable the 2nd variable is. We are given that the 2nd variable is “7 jumps”.  This means that the 2nd variable is quantitative because it refers to or relating to a measurement of something rather than the quality. We also know that jumps can only take whole numbers, not decimal. Therefore it is also discrete. Hence, the 2nd variable is:

quantitative and discrete

6 0
3 years ago
Rent control is usually justified on the grounds that it protects moderate- to low-income families from the burden of rapidly ri
horsena [70]

Answer:

c. equality.

Explanation:

Rent control is a government directive that limits the amount a landlord can charge as rent or for rent renewal. When the landlord is renewing rent there is a maximum percentage for rent increase.

Rent control is intended to create a level of equality for low-income earners and elderly people on fixed income.

This has been a successful initiative and has helped in balancing the standard of living of the target population.

5 0
3 years ago
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $302,000 and in Allowance for Uncollectible A
Lunna [17]

Answer:

$870

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Allowance for uncollectible accounts at 5%

= 5% * $302,000

= $1,510

Since the Allowance for Uncollectible Accounts was $640 (credit) before any adjustments, the bad debt expense for the year

= $1,510 - $640

= $870

8 0
2 years ago
Under section 404 of the sarbanes oxley act auditors are required to
siniylev [52]
Basically, the Sarbanes Oxley Act was not a single Act, but a series of Acts that were designed to expand starting requirements for companies such as firms and overall businesses. Section 404 is one of the Acts that are specifically set on the company's control on their financial reports made. As a result, internal management or more commonly known as the Internal Affairs program of a company must provide a detailed and clear-written (straight-to-the-point) report on the company's structure (how they do things) and creating, or establishing, a set of procedures on how they plan to report their financial status.
6 0
3 years ago
Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactionsduring the mon
frozen [14]

Answer:

<u>If records invoices at gross amounts</u>

October 2th

inventory    3,000 debit

    A/P                    3,000 credit

October 2nd

A/P              500 debit

      inventory           500 credit

October 17th

inventory       5,400 debit

      A/P                    5,400 credit

October 26th

A/P                5,400 debit

           Inventory          108 credit

           cash               5,292 credit

October 31th

A/P             2,500 debit

      Cash                 2,500 credit

<u>If records invoices at nets amounts</u>

October 2th

inventory    2,940 debit

    A/P                    2,940 credit

October 2nd

A/P              490 debit

      inventory           490 credit

October 17th

inventory       5,292 debit

      A/P                    5,292 credit

October 26th

A/P                5,292 debit

           cash               5,292 credit

October 31th

A/P             2,490 debit

Inventory         10 debit

      Cash                 2,500 credit

Explanation:

gross amount: we use the invoice nominal

net amount: we use the net nominal

October 2nd net:

3,000 x (1-2%) = 2,940

returns net: 500 x ( 1 - 2%) = 490

October 16th invoice net:

5,400 x ( 1 - 2%) = 5,292

october 31th

october 2th invoice balance:

2,940 - 490 = 2,450

8 0
3 years ago
Other questions:
  • During the year, a corporation declares a dividend and subsequently distributes to a stockholder $15,000 in cash and a bond with
    5·1 answer
  • Needing some help deciding on this one:
    9·1 answer
  • Ron shaich, ceo and founder of panera bread started the company with a mission—which is the first step in
    15·1 answer
  • On December 28, I. Greasy Catering Company completed $600 of catering services. As of December 31, the customer had not been bil
    15·1 answer
  • Caliana manages the warehouse for United Processors Inc. At the beginning of each year, she determines the department goals for
    9·1 answer
  • 22. The difference between advertising and public relations is that advertising is:
    8·2 answers
  • Firms in a perfectly competitive market are said to be "price takers"—that is, once the market determines an equilibrium price f
    10·1 answer
  • Mikey W. Smitty, an emerging rapper, is getting ready to cut his first CD, called "Western Rap." He is looking for a production
    9·1 answer
  • Animated comedy show, American Family, is being broadcast in Houston. A potential advertiser wants to know how popular the show
    9·1 answer
  • intelligent industries recently purchased a $50,000, 10% 12-month bond. from intelligent’s point of view, this bond would be con
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!