Answer: a. He has an acquisition cost of $4,800 and a date of acquisition of March 15, 2007.
Explanation:
A Put amount gives the holder the right to sell underlying assets. As the Put was exercised, the customer would have to buy the underlying stock and the price they will pay for it is the strike price of the Put less the cost of the Put.
Options contracts come in 100s so;
Acquisition cost = (50 - 2) * 100
= 48 * 100
= $4,800.
The date of acquisition is the day the put was exercised.
Answer:
a) $2000
b) $1,886.7925
C) $2,036.7925
Explanation:
First, the question states to determine the expected claim cost per policy
Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.
A) Expected Claim Cost per policy
= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)
= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000
Part B: discounted expected claim cost per policy
Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate (discounting used)
=$2,000 ÷ (1 + 0.06)
= $1,886.7925
Part C:: Determine the Fair Premium
Fair Premium is calculated as follows
The discounted policy claim cost + the Processing Cost per application + The fair profit loading
= $1,886.7925+ $100+50 = $2,036.7925
Answer:
Steak is a normal good, and hamburger is an inferior good for Jennie
Explanation:
Based on this behavior, we can assume steak is a normal good, and hamburger is an inferior good for Jennie. That is because a normal good is any good who's demand increases when there is a rise in the consumers' income, while an inferior good sees decreased demand due to a rise in income. Therefore, since Jenna buys more (increased demand) steak and less (decreased demand) hamburger due to her increased income this means that steak is a normal good, and hamburger is an inferior good for Jennie
Answer:
copyright
Explanation:
Analyzing the information provided by the question, it is ideal for the artist to protect his original oil paintings from being sold as original prints by requesting a copyright.
This is a legally guaranteed way for artists, scientists and scholars to protect their intellectual property from fraudulent reproductions that do not grant them due copyrights.
Therefore, copyright motivates individuals to produce intellectual content relevant to society, with the certainty that the author's rights will be maintained, even after the death of the creator, copyright guarantees the security of rights after 50 to 100 years.
