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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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How does adaptability assist a school leaver to become a successful business owner
noname [10]

Answer:

To create a high degree of adaptability, you should develop more meaningful business relationships with others. If you're mindful of being respectful to others or having empathy, your relationships are only bound to deepen. In other words, when people see that you care about them and their businesses and not just what they can do to help you, you may gain more success. When you help someone without expecting anything in return, something happens. You get goodwill returned to you. In other words, when someone has a need or sees an opportunity for you, they will think of you, so it pays to keep your professional relationships adaptable.

People with a high degree of versatility have specific characteristics: attentiveness, competence, and resilience. Versatile people have a vision for the future and the ability to self-correct. People who are not versatile are resistant to change and single-minded. As an example, our friend could not focus on anything more than client development.

Explanation:

3 0
2 years ago
Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchase
wlad13 [49]

Answer:

Explanation:

GDP = C + I + G + NX

Where, C = Consumption, I - Investment, G - Government Purchases, NX - Net Exports

GDP = 11.00 + 1.20 + 3.10 + (1.20 - 2.32)

       = 14.18 trillions of Rupees

6 0
3 years ago
On January 1, Year 5, customers owed Eagle $40,000. On December 31, Year 5, customers owed Eagle $30,000. Eagle uses the direct
irinina [24]

Answer:

$200,000

Explanation:

The computation of the net revenue is shown below:

= Cash sales gross - Returns and allowances + credit sales gross - discounts + beginning balance of account receivable - ending balance of account receivable  

= $80,000 - $4,000 + $120,000 - $6,000 + $40,000 - $30,000

= $200,000

We simply first compute the net cash sales after considering the returns and allowances, and net credit sales after considering the discounts, and deduct the ending balance of account receivable

3 0
3 years ago
You invested $30,000 in BOA, $20,000 in Best Buy, and $50,000 in Harley-Davidson for your portfolio. Betas are 1.8, 1.05 and 1.5
steposvetlana [31]

Answer:

Beta= 1.5

Explanation:

<u>First, we need to calculate the proportional investment of each asset:</u>

Total investment= $100,000

BOA= 30,000/100,000= 0.3

Best Buy= 20,000/100,000= 0.2

Harley-Davidson= 50,000/100,000= 0.5

<u>To calculate the beta of the portfolio, we need to use the following formula:</u>

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)...

Beta= (0.3*1.8) + (0.2*1.05) + (0.5*1.5)

Beta= 1.5

4 0
2 years ago
1. Calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 9.8%, and the MPC is 0.75.
Mars2501 [29]

Answer: 860

Explanation:

The gross domestic product is the value of the goods and services which are produced in a particular country from the year.

In this question, we are informed that we should calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 9.8%, and the marginal prospensity to consume is 0.75.

The GDP loss will be calculated as:

= [(0.75 × 9.8)/100 × 10,000] + 125

= [(7.35/100) × 10000] + 125

= [(0.0735) × 10000] + 125

= 735 + 125

= 860

6 0
3 years ago
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