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Nataliya [291]
3 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]3 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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Answer:

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Explanation:

1. Cash in hand and at bank balance. This an example of a current asset. The first question is how much does the church have as cash and bank balance. The reason is to ascertain whether the fund will be sufficient for the new building project.

2. Land and Buildings availability. This is a fixed asset. The board would enquire whether there is an already existing building or land with which to begin the building project.

3. Debt or loan owed by the church. Loan forms part of liability in a balance sheet. Another question to be asked is whether the church is indebted to a bank or financial institution. This will determine whether or not to continue with the building project.

4. Record of church document. Does the church have any existing document with which to support the new building? This is pertinent as to begin or abandon the plan to build a new church.

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4 years ago
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Answer:

idk

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idk

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