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Nataliya [291]
2 years ago
5

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 on the option for the speculator based on the information above is:a.$1,562 b. -$1,562 c. -$1,250 d. -$1,250 e. None of the above
Business
1 answer:
ratelena [41]2 years ago
6 0

Answer:

b) -$1,562

Explanation:

The speculator has the chance for sale at 1.50 because the price rises instead of decrease, it is losing money.

The speculator does not use their right to sale at 1.50

It will simply lose the value on which purchase the put option

0.05$ per unit  x 31250 units  = 1562.5

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How is the value of a product determined?
svetoff [14.1K]

Answer:

One approach is to use the simple equation Value = Benefits / Cost. The plus side to this approach is that it is concrete and quantifiable. You can measure the profit consistently throughout the life of the product, charting changes in value over time.

5 0
3 years ago
After the civil war the supreme court tended to view economic regulation as something that
sattari [20]

Answer:

attacked or assaulted property rights.

Explanation:

After the civil war, the supreme court held the idea that any government regulation (especially economic regulation) denied private businesses of their property rights and liberties, which constituted a violation of the Fourteenth Amendment. The Fourteenth Amendment guaranteed equal and legal rights to all US citizens (businesses were included as citizens) and guaranteed that no government (state or federal) shall deny any citizen of life, liberty, or property without due process of law.

We have to remember that these were sensible times and the supreme court tried to protect the newly given rights specially to African Americans, but sometimes business people are very capable of using ideological trends in their favor.

4 0
3 years ago
Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information: Labor rate
mylen [45]

Answer:

49%

Explanation:

Material mark up per dollar of material used = Target profit + Percentage of material purchasing , handling and storage

Material mark up per dollar of material used = 25% + (315,900/1,316,250 *100)

Material mark up per dollar of material used = 25% + 24%

Material mark up per dollar of material used = 49%

5 0
3 years ago
Marsha is 23 years old and single. She cannot be claimed as a dependent by another taxpayer. Marsha earned wages of $18,500 and
Vedmedyk [2.9K]

Answer:

1. d. Both a and c.

2. True.

Explanation:

Marsha and Shelby both are U.S. citizen. Marsha can claim Income credit once she is 25 years older up to 65 years of age. The individual below 25 years of age cannot claim income credit according to the tax law prevailing in U.S.

8 0
3 years ago
Scene: A savvy investor has a mix of stocks and bonds in their investment portfolio. Why would it be a good idea to mix stocks a
Komok [63]

Answer:

Explanation:

It wouldn't now, unless you are very wealthy. Interest rates are very low and you would have to go into the junk bond market to get any kind of decent return. But Junk Bonds are or can be very unstable and you get a high return for a very chancy situation.

I think I know what the question wants you to understand. You need something that will provide with income. You just don't want to deal with bonds. There are stocks around that pay dividends; they are very conservative and if they go down, that will be the least of your problems.

You can then devote your resources to capital gains or pure stocks: no interest payments, but the stock itself goes up. There is a whole different tax system for capital gains.

You should also get some gold or silver as insurance.

Since you have asked about stocks and bonds, I have not said anything about cryptos. That's an option, but you have to be very knowledgeable because those things can be an investment nightmare.

7 0
2 years ago
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