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
Dafna11 [192]
3 years ago
15

A call option on Jupiter Motors stock with an exercise price of $80 and one-year expiration is selling at $2. A put option on Ju

piter stock with an exercise price of $80 and one-year expiration is selling at $.5. If the risk-free rate is 8% and Jupiter pays no dividends, what should the stock price be?

Business
1 answer:
creativ13 [48]3 years ago
7 0

Answer:

$70.85

Explanation:

Please see attachment.

You might be interested in
Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business
Fudgin [204]

Answer:

The Cash Collections in the month of November are c. $386,150.

Explanation:

Months                            September             October           November

Sales                                $249,000             $304,000          $410,000

Cash Collected (25%)         62,250                  76,000             102,500

⇒ Sales on Account       $186,750             $228,000         $307,500

Collections of Rec.

Last Month (30%)                                                                         68,400                                              

Current Month (70%)                                                                  215,250

Total Collections                                                                      $386,150

Workings for November:

Last Month Collection = 228,000 * .3 = 68,400

Current Month Collection = 307,500 * .7 = 215,250

Total Collections = 68,300 + 215,250 + 102,500 = $386,150.

I hope the format and alignment remain the same. Thanks!

4 0
3 years ago
Read 2 more answers
North Company has completed all of its operating budgets. The sales budget for the year shows 50,160 units and total sales of $2
arlik [135]

Answer:

North Company

Budgeted multiple-step income statement for the year ending December 31, 2020

Sales of                                               $2,228,200

Cost of Goods Sold ($24 x 50,160)  <u>($1,203,840)</u>

Gross Profit                                                               $1,024,360

Operating Expenses:

Selling and administrative expenses                     <u>($309,200)</u>

Operating Income                                                    $715,160

Non-Operating Expenses:

Interest  Expense                                                     <u>($12,710)   </u>

Operating Income before tax                                  $702,450

Income taxes                                                            <u>($226,800)</u>

Operating Income after Tax                                    <u> $475,650</u>

Explanation:

Multi-step Income statement segregate the Operating Income and Expenses from non operating Income and Expense. It shows the gross profit and net operating income separately.

8 0
3 years ago
If you have an extremely "bullish" outlook on the stock market, you could attempt to maximize your rate of return by ___________
Bad White [126]

purchasing out-of-the-money call options is the answer

6 0
3 years ago
Suppose the Fed decides to increase the money supply. It purchases a government bond worth $2,000 from Antonia, a private citize
Ivanshal [37]

Answer:

(a) Trace the effect of this change through three banks- First National, Second Federal, and Third State.

Antonia deposits $2,000 in First National Bank.

Then First national Bank lends $1,600 to client X that uses the money to purchase something. The seller of that something deposits the money In Second Federal Bank.

Second Federal Bank then lends $1,280 to client Y that decides to use that money to pay his rent. Client Y's landlord then deposits the money in Third State Bank.

Third State Bank will then lend $1,024 to client Z...

(b) How much money will be generated in this banking system?

total money generated in the banking system = Antonia's deposit x money multiplier

money multiplier = 1 / required reserve rate = 1 / 0.2 = 5

so the total money generated = $2,000 x 5 = $10,000

6 0
3 years ago
Gullett Corporation had $30,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additiona
Bogdan [553]

Answer:

The journal entry to record the purchase raw material would include a debit to raw material of $79000 and credit to Raw materials of $109000..

Explanation:

Since the raw material is coming into the company, we have debit raw material and the opening balance is already there in the books of the business. hence raw materials increases.

7 0
2 years ago
Other questions:
  • Since the 2008 global financial crisis, the B/L ("bill of lading") of container shipments from Asian factories to the United Sta
    10·1 answer
  • N increase in buyers' income in the market for radios will _______ the market price and ________ the market quantity of radios,
    8·1 answer
  • Suppose you are planning to spend $1,768 annually for vacation during the next 30 years. You are offered to pay $30,000 now so t
    10·1 answer
  • What groups are especially hard hit by poverty?
    12·1 answer
  • The program whereby taxes are deducted from employees' checks, proceeds are put into a trust fund, and distributed to the elderl
    12·1 answer
  • Which type of tort happens when you unfairly damage another company's reputation?
    6·1 answer
  • Sarah, the cofounder of a start-up company that sells sports goods, prepares a mission/purpose statement for the company. In the
    7·1 answer
  • g Suppose a bond is priced at $1035, has 12 years remaining until maturity, and has a 12% coupon, paid monthly. What is the amou
    10·1 answer
  • State the difference between selection and recruitment.
    10·1 answer
  • Which example is the long-term savings goal?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!