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Semenov [28]
4 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]4 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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Betty, a project manager, sent out agendas before an upcoming meeting to everyone involved. During the meeting, she got a team m
steposvetlana [31]

Answer:

Check: Review the test, analyze the results, and identify what you’ve learned.

Explanation:

The four phases are:

Plan: identify and analyze the problem or opportunity, develop hypotheses about what the issues may be, and decide which one to test.

Do: test the potential solution, ideally on a small scale, and measure the results.

Check/Study: study the result, measure effectiveness, and decide whether the hypothesis is supported or not.

Act: if the solution was successful, implement it

5 0
3 years ago
Selling price per unit is $68
kari74 [83]

Answer:

Income statement

Sales Revenue                                                                     $  612,000

Variable Overhead cost                                                      $  (315,000)

Fixed manufacturing overhead                                            <u>$ ( 126,000)</u>

Gross Profit                                                                            $   171,000      

Variable Operating expenses                                              $ (    27,000)

Fixed Operating expenses                                                    <u>$(    93,000)</u>

Net Income                                                                              $    51,000

Explanation:

Income statement

Sales Revenue ( 9,000 units * $ 68)                                    $  612,000

Variable Overhead cost ( 9,000 * $ 35 )                             $  (315,000)

Fixed manufacturing overhead                                            <u>$ ( 126,000)</u>

Gross Profit                                                                            $   171,000      

Variable Operating expenses ( $ 3 * 9000 units)               $ (    27,000)

Fixed Operating expenses                                                    <u>$(    93,000)</u>

Net Income                                                                              $    51,000

4 0
3 years ago
Toy Mart recently announced that it will pay annual dividends at the end of the next two years of $1.60 and $1.10 per share, res
Delicious77 [7]

Answer:

$9.43

Explanation:

Calculation for what should this stock sell for today

Stock today = $1.60/1.135 + $1.10/1.135^2 + $13.50/1.135^5

Stock today = $9.43

Therefore what should this stock sell for today is $9.43

6 0
3 years ago
If you want to know whether a company had a profit or a loss during a specific period of time, which financial
elixir [45]

Answer:

d income statement

Explanation:

this statement shows profit/loss

6 0
3 years ago
Jorah works as a technician at a factory that assembles train coaches. The coach remains stationary, and workers and machines mo
Jet001 [13]

Answer:

fixed-position layout

Explanation:

Based on the information provided within the question it can be said that the layout that is being used at Jorah's workplace is a fixed-position layout. This type of layout refers to the project/product staying in a fixed position and the workers go to the product site in order to build it. Which is what Jorah does by going to the factory where the train coaches are assembled.

6 0
3 years ago
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