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PSYCHO15rus [73]
3 years ago
7

"The premium on a pound put option is $.04 per unit. The exercise price is $1.60. The break-even point is ____ for the buyer of

the put, and ____ for the seller of the put. (Assume zero transaction costs and that the buyer and seller of the put option are speculators." g
Business
1 answer:
IrinaVladis [17]3 years ago
7 0

Answer:

$1.56, $1.56

Explanation:

Break-even point on a Put option is the Net of premium cost. Your exercise price is $1.60, it includes the premium price paid to the seller. The break-even point for the will be $1.56 ( $1.60 - $0.04 ) and for the seller it will also be $1.56 because there is no transaction cost is involved and the premium received is an income for him.

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When this form of strategies are used in management it means that the <u>company would rather stay stable than go for higher while risking their basic business.</u>

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mario62 [17]

Answer:

Explanation:

From the information given in the question:

The main objective is to Prepare a merchandise purchases budget for the months of April, May, and June

                        Merchandise Purchases Budget

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Next months' budgeted        1250000            810000          1650000

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Ratio of inventory                  30%                     30%               30%

Desired ending inventory     375000              243000         495000

Sales unit                               1640000             1250000       810000

Required units of

available inventory                2015000             1493000       1305000

Less:Beginning Inventory     -250000             - 375000      - 243000

Units to be purchased           1765000              1118000       1062000

N:B

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Answer:

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