Your local movie theater earns a total revenue of $40,000 per month when the price of a movie ticket is $8, and it earns a total
revenue of $35,000 when the price of a movie ticket is $10. Demand is . Part 2 (1 point)See Hint When your local Internet service provider increased its monthly charge from $40 to $50, the number of subscribers fell from 2,000 to 1,800. Demand is . Part 3 (1 point)See Hint Last month, your local coffee shop charged $4 for a cappuccino and sold 150 cappuccinos. This month, it increased the price of a cappuccino to $5 and is on track to sell 120 cappuccinos.
2 answers:
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Answer:
The answer is "$400"
Explanation:
The price value of the exercise:
= $127
The expiration date price value is:
= $135
Calculating the profit for Calls buyer:
= $135-$127
= $8
The value of 1 call = 100 shares
calculating the total profit :
=$ 8 × 100
= $ 800
One alternative purchase price:
= $12
Call option Total purchase price:
= $12 × 100
= $1200
The buyer's total loss:
= $1200 - $800
= $400
The Loss for the buyer:
Hence profit for the writer = $400