An increase in the demand for peanut butter could be caused by a(n)

You sold five put contracts on CTB stock at an option price per share of $1.90. The options have an exercise price of $45 per sh

IRINA_888 [86]

Answer:

-$2,050

Explanation:

Given that,

Number of options sold = 5

Option price per share = $1.90

Exercise price = $45 per share

Market price = $39 per share

As the exercise price is greater than the stock market price, so the purchaser of the put option will exercise the option,

Lot size = 100 shares

Therefore, the loss on this investment is calculated as follows:

= -{[(Exercise price - Market price) × Number of options sold] - (Option price × Number of options sold)} × Lot size

= -{[($45 - $39) × 5] - ($1.90 × 5)} × 100

= -$2,050

6 0

3 years ago

During the fiscal year ended June 30, 20X9, the city of Moorhead constructed a new courthouse that was budgeted to cost $5,000,0

svetoff [14.1K]

Answer:

The correct answer to the following question is option A) $490,000.

Explanation:

In 20X9, June 30 , the city of Moorhead went on to construct a new courthouse whose total budgeted cost was $500,000.

And in July 20X8, the project was given to Diamond construction to build the courthouse for $480,000. And on June 20X9, Diamond completed the courthouse and gave city of Moorhead a bill of $490,000, which they accepted and paid. So the city of moorhead should report their expenses as $490,000 on the statement of revenues, expenditures and fund balance.

5 0

3 years ago

Methods of short-term financing include?

Alchen [17]

Answer:

a Bill of Exchange

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3 0

2 years ago

On January 1, 2020, Carter Company makes the two following acquisitions. 1. Purchases land having a fair value of $200,000 by is

viktelen [127]

Answer:

PART A.

1. January 1, 2020

Account Titles and Explanation Debit Credit

Land 200,000

Discount on Notes Payable 137,012

Notes Payable 337,012

2. January 1, 2020

Account Titles and Explanation Debit Credit

Equipment 185,673

Discount on Notes Payable 64,327

Notes Payable 250,000

Solution:

A. 2. Computation of the discount on notes payable:

Maturity value $250,000

Present value of $250,000 due in 8 years at 11% = $250,000 x 0.43393 = $108,483

Present value of $15,000 payable annually for 8 years at 11% annually = $15,000 x 5.14612

= 77,192

Present value of the note (185,675)

Discount $64,325.

PART B

1. December 31, 2020

Account Titles and Explanation Debit Credit

Interest Expense 22,000

Discount on Notes Payable 22,000

2. December 31, 2020

Account Titles and Explanation Debit Credit

Interest Expense 20,424.08

Discount on Notes Payable 5,424.08

Interest Payable 15,000

Solution:

(b) 1. Discount on Notes Payable = ($200,000 x 11%) = $22,000

(b) 2. Interest Expense = ($185,675 x 11%) = $20,424

Interest Payable = ($250,000 x 6%) = $15,000

3 0

3 years ago

When a nation’s currency appreciates, what is the most likely result?

vichka [17]

When a nation's currency appreciates that means there is an increase in the exchange rate. It would result to cheaper imports and lower inflation rates which would be advantageous to those countries who are importing goods. While a weak currency would be better for an economy that's exporting goods to other countries.

8 0

3 years ago