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
Arisa [49]
3 years ago
14

Rosa purchased three call option contracts on ABC stock with a strike price of $27 when the option premium was quoted at $1.1. T

he option expires today when ABC stock price is $29 at the market. She pays $10 as trading costs in total. What is the net profit on this investment?
Business
1 answer:
IrinaK [193]3 years ago
8 0

Answer:

Explanation:

Profit on a long call option = max(St - X, 0) - premium paid  

Profit on a long call option = max(29 - 27, 0) - 1.1

Profit on a long call option = max(2, 0) - 1.1

Profit on a long call option = 2 - 1.1

Profit on a long call option = 0.9 per share

Total profit on the long call option = 0.9 * 100 shares per contract * 3 contracts  = 0.9 * 100 * 3  = $270

Net profit on this investment = 270 - 10

Net profit on this investment = $260

You might be interested in
Plzzz help (use attached photo)
myrzilka [38]

Answer:

Academic achievements. ...

Relevant coursework. ...

Clubs. ...

Sports and musical instruments. ...

Volunteer work. ...

Languages. ...

Computer skills. ...

Any kind of employment at all.

Explanation:

7 0
3 years ago
The _________ strategy involves a firm using different marketing mix activities to help consumers perceive the product as being
nadezda [96]

Answer:

product differentiation

Explanation:

A product differentiation strategy focuses on distinguishing your company's products or services from the competition. The company must add meaningful and valued differences that will distinguish our product or service in order for our customers to view them as different or better. The goal of a differentiation strategy is to gain a competitive advantage since customers associate differentiated products to higher quality products.

7 0
3 years ago
The bank charged another company's check against our account. This would be included on the bank reconciliation as a(n)?
xxTIMURxx [149]

When bank charged another company's check against our account this would be included on the bank reconciliation as a addition to the balance per books.

A bank reconciliation statement summarizes banking and business activities and reconciles a company's bank accounts and its financial records. A bank reconciliation statement confirms that the payment has been processed and the cash collection has been credited to your bank account.

Withdraw an outstanding check. This will give you a reconciled bank balance. Then, use the cash balance at the end of the business to add up the interest earned and any outstanding bills. Deduct all bank charges, penalties and NSF checks.

Procedures for verifying the accuracy of both company bank statements and cash accounts. - Must be completed at the end of each month. A common cause of differences between the bank's ending balance and the cash book's ending balance.

Learn more about reconciliation at

brainly.com/question/15525383

#SPJ4

5 0
2 years ago
On October 1, Company B records 1 year of prepaid rent in an income statement account then adjusts for the unexpired prepaid ren
trasher [3.6K]

Answer:

The first journal entry was not the most appropriate, but since the mistake was correctly adjusted at the end of the year, both assets and expenses will be the same whether they did it correctly the first time or they had to adjust a mistake at the end of the year.

E.g. something like this happened

October 1, rent expense for 1 year

Dr Rent expense 12,000

    Cr Cash 12,000

December 31, adjustment to rent expense

Dr Prepaid rent 10,000

    Cr Rent expense 10,000

they should have recorded it as:

October 1, prepaid rent for 1 year

Dr Prepaid rent 12,000

    Cr Cash 12,000

December 31, adjustment to rent expense

Dr Rent expense 2,000

    Cr Prepaid rent 2,000

Whichever way you recorded the transactions, the balances a the end of the year would be:

prepaid rent (asset) $10,000

rent expense (expense) $2,000

6 0
3 years ago
Neutrino Industries stock trades at $49 per share and there are 120 million shares outstanding. The management would like to rai
Gelneren [198K]

Answer:

Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.

Explanation:

To calculate this, let B represents the number of shares Neutrino Industries must sell. Therefore, we have:

Gross proceeds = $49 * B, or $49B

Underwriter charges = 6% * $49B = $2.94B

To raise $400 million, we deduct the underwriter charges from gross proceeds and solve for B as follows:

$49B – $2.94B = $400,000,000

$46.06B = 400,000,000

B = 400,000,000 / 46.06

B = 8,684,324.79 shares, or 8.68 million shares.

Therefore, Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.

4 0
3 years ago
Other questions:
  • A company rents office space for $10,000. The company hasn’t yet recorded payment as an expense in the financial statements beca
    15·1 answer
  • As the workforce becomes more diverse, why does performance appraisal become a more difficult process?
    15·1 answer
  • Categories of expendituresGilberto and Juanita Ivanov live in Swarthmore, PA. Juanita's father, Lorenzo, lives in SwedenFor each
    9·1 answer
  • What are tax credits?
    6·1 answer
  • If the distribution of water is a natural monopoly, then:__________.
    13·1 answer
  • An international calling plan charges a rate per minute plus a flat fee. a 10-minute call to france costs $3.19. a 15-minute cal
    7·1 answer
  • What motivates U.S. companies to tailor their policies and practices to address
    15·1 answer
  • What is the Federal Reserve System able to do?
    15·1 answer
  • How is marginal analysis used
    15·1 answer
  • Debra notes that Theo Chocolate has started holding its own operations to the same IMO standards of fair trade to which it holds
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!