1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pantera1 [17]
3 years ago
10

Consider an exchange-traded call option contract to buy 500 shares with a strike price of $40 and maturity in four months. Expla

in how the terms of the option contract change when there is a) A 10% stock dividend b) A 10% cash dividend c) A 4-for-1 stock split
Business
1 answer:
kvasek [131]3 years ago
3 0

Answer:

The explanation of the terms of the option contract change is below

Explanation:

a. Every call option contract will cover more shares

= 500 × 1.1

= 550

for computing the 1.1 (1 + 10%)

The strike price will be reduced for each share to

= 40 ÷ 1.1

= $36.364

b. Cash dividend would not adjust the terms of the contract but the contract value would decrease if it is an option to call and increase if it is an option to place

c. Each contract call option will cover more shares

= 500 × 4

= 2,000

The strike price will be reduced for each share to 40 ÷ 4  

= $10

You might be interested in
One reason a long-tenured top-level manager may hesitate to conclude the firm's structure is a problem is that doing so: a. sugg
uysha [10]

Answer: suggests that the firm's previous choices were not the best ones.

Explanation: For a long-tenured top-level manager to make such proclamation, shows the inefficiencies of the firm which he is a part of. He obviously has been with the firm for a very long time and making that proclamation will also be a dent in his image as a manager.

8 0
3 years ago
Mona contracts to repair a computer for New Data, Inc. (NDI) for $450 and have it done by next Monday. Mona knows that without t
damaskus [11]

Answer:

$5,000

Explanation:

Consequential damages are damages that result from the one party in a contract not performing their part or breaching the contract.

In this case, New Data can sue Mona for consequential damages resulting from Mona not performing her contractual obligations. The damages that New Data can recover = $5,000 which is the profit from the lost sale. The $1,000 spent fixing the computer cannot be recovered.

8 0
3 years ago
Deindustrialization affects the economic landscape of countries. Describe the change in the dominant economic sector during indu
IceJOKER [234]

Answer:

a. One spatial change in manufacturing employment patterns as a result of deindustrialization is production shift.

b. Companies may move their industrial activities and manufacturing jobs to areas with a lower cost of labor.

c. Some natural places could be deemed unfit for humans.

d. Facilitating the construction of railroads, bridges, tall buildings, larger ships, and other infrastructure, Powering service-sector industries such as information technology, financial services, retail, and education, all of which depend on the processing power and connectivity brought about by the computer chip.

e. A growth pole is significant to an urban economy as it will attract supporting businesses such as retail establishments, restaurants, and other service industries to the city or urban area on a local scale.  

f. Post-fordism methods of production have transformed operation at individual factories by instead of workers working only one task all day and not being able to perform other tasks in the factory the workerscould now work multiple tasks and were not concealed to one specific area of work, this also made the workers more appealing to other factories and made it to where they could work other positions for more money and could not be so easily concealed for one spot.

Explanation:

A+

7 0
3 years ago
Ritchie orders 1000 widgets from Cunningham Widget Co. The widgets are stored in Al's Warehouse. Under the contract, CWC is requ
Aleks [24]

Answer:

when CWC gives Richie a warehouse receipt for the widgets

Explanation:

3 0
3 years ago
State and briefly axplain five contribution of scientific management to modern management practices​
butalik [34]

Answer:

One of the greatest contributions of scientific management in today's organization is increasing the productivity. Scientific management focuses on the activities performed by the workers in an organization. The importance of this was that scientific management makes the workers or employees efficient

4 0
3 years ago
Other questions:
  • Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issu
    14·1 answer
  • only a monopolistically competitive firm operates at its efficient scale. both a perfectly competitive firm and a monopolistical
    9·1 answer
  • On January 2, Yorkshire Company acquired 40% of the outstanding stock of Fain Company for $600,000. For the year ended December
    8·1 answer
  • Parwin Corporation plans to sell 43,000 units during August. If the company has 18,000 units on hand at the start of the month,
    5·1 answer
  • Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation. Juice Smoothies does not pay for the storage
    11·1 answer
  • Catalogue companies are committed to selling at the prices printed in their catalogues. If a catalogue company finds its invento
    13·1 answer
  • A firm operated at 80% of capacity for the past year, during which fixed costs were $198,000, variable costs were 66% of sales,
    5·1 answer
  • When demonstrating 2022 maxima’s confident cornering, what should you point out?
    15·1 answer
  • Kyle liked to think he could program anything digital. He created a new video game, and a major industry firm wanted to buy it f
    9·1 answer
  • sheridan company had beginning inventory of $12600 at March 1, 2022. During the month, the company made purchases of $54600. The
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!