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Semenov [28]
3 years ago
11

You purchase one IBM July 125 call contract for a premium of $5. You hold the option until the expiration date when IBM stock se

lls for $123 per share. You will realize a ______ on the investment. Each contract is for 100 shares of stock
Business
1 answer:
Trava [24]3 years ago
3 0

Answer:

Loss of $500

Explanation:

Given that

Stock price = 123

Strike price = 125

Premium price = 5

Recall that

Long call profit = (MAX (stock price - strike price, 0) - premium per share

Thus,

Long call profit = Max [0, ($123 - $125)(100)] - $500

= - $500.

Therefore, the negative sign in front indicates a loss of $500

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g Two countries produce bananas and sugar. In Country X each worker in a one-day period can produce either 15.4 pounds of banana
faltersainse [42]

Answer:

country X will export 27 pounds of Bananas  for 4.21 pounds of sugars

Explanation:

<u>For country X </u>

1 labor period = 15.4 pounds of bananas

1 labor period = 2.4 pounds of sugar

next calculate opportunity costs

opportunity cost of 1 pound of Banana = 2.4 / 15.4 = 0.1558

opportunity cost of 1 pound of sugar = 15.4 / 2.4 =  6.4167

<u>For country Y </u>

1 labor period = 8.7 pounds of bananas

1 labor period = 3.1 pounds of sugar

opportunity cost of 1 pound of banana = 3.1 / 8.7 = 0.3563

opportunity cost of 1 pound of sugar = 8.7 / 3.1 = 2.8064

<em>when the opportunity costs are compared </em>

<em>Country X has a lower opportunity cost for the production of banana  while </em>

<em>Country Y has a lower opportunity cost for the production of sugar </em>

Hence country X will export Banana

I pound of Banana will be exported for 0.1558 sugars

i.e. 27 pounds of Bananas will exchanged for ( 27 * 0.1558 ) sugars

27 pounds of Bananas  = 4.21 pounds of sugars

7 0
3 years ago
Allison is concerned that she is not getting full disclosure of information from a mortgage broker who is hoping to refinance th
blsea [12.9K]
<span>Consumer Financial Protection Bureau (CFPB)</span>
5 0
3 years ago
A restaurant offers hamburgers and cheeseburgers on its menu. Customers order a hamburger, indicate how it is to be cooked and w
Elina [12.6K]

Answer:

D

Explanation:

Late point differentiation is when the production process starts with a generic product and the end product is differentiated to a specific end product.  Late point differentiation is used in firms where there is a high level of demand uncertainty

<u>Advantages of Late point  differentiation</u>

1. it also consumers to receive a differentiated or customised product

2. It reduces the waiting time of consumers and allows consumers access quicker services

3 0
3 years ago
Balance Sheet Current assets Cash 870,000 Acc receivable not given Inventories 1,050,000 Fixed assets 3,220,000 TOTAL ASSETS 6,2
KengaRu [80]

Answer:

The firm's debt ratio is 0.3758

Explanation:

The formula to compute the firm debt ratio is shown below:

Debt ratio = Total liabilities ÷ Total assets

where,

Total liabilities = Total liabilities and equity - common stock - retained earning

                        =  $6,200,000 - $680,000 - $3,190,000

                        = $2,330,000

And, the total assets are $6,200,000

Now put these values to the above formula

So, the answer would be equal to

=  $2,330,000 ÷ $6,200,000

= 0.3758

7 0
3 years ago
Able Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the compa
Scilla [17]

Answer and Explanation:

a. the equivalent units of production

                                       Material          Conversion cost

Unit completed and

transferred out                 20,700           20,700

Ending Work in progress  480                 180

                                     (600 × 80% )      (600 × 30% )

Equivalent unit                21,180           20,880

b.The costs per equivalent unit

                                       Material          Conversion cost

Beginning

work in progress             342                      2,394

Cost added                      $44,136            $546,750

Total cost                        $44,478             $549,144

Equivalent unit                  21,180              20,880

Cost per unit                      $2.1                   $26.3

c. The cost of ending work in process inventory

                                  Material       Conversion cost        Total cost

Ending  

work in progress      1,008                4,734                      5,742

                       (600 × 80% × $2.1)   (600 × 30% × 26.3 )

d. The cost of the units transferred to the next department

                                  Material       Conversion cost        Total cost

Unit completed and

transferred                 43,470              544,410                 587,880

                             (20700 × $2.1 )   (20700 × $26.3 )

4 0
2 years ago
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