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2 years ago

What is the maximum potential loss for a customer who is short 100 shares of ABC stock at $33 and short 1 ABC Jan 35 Put at $6?

Business

1 answer:

damaskus [11]2 years ago

8 0

Answer:

Unlimited loss potential

Explanation:

The maximum potential loss for a customer who is short 100 shares of ABC stock at $33 and short 1 ABC Jan 35 Put at $6 will be unlimited.

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Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to ser

Kryger [21]

Answer:

Bid A should be accepted

Explanation:

Bid A:

initial investment = $5.75 x 12,000 = -$69,000

cash flows years 1 - 4 = $0.25 x 12,000 = -$3,000

cash flow year 5 = -$69,000

cash flows years 6 - 9 = $0.25 x 12,000 = -$3,000

NPV using a 9% discount rate = -$129,881.21

Bid B:

initial investment = $10.50 x 12,000 = -$126,000

cash flows years 1 - 9 = $0.09 x 12,000 = -$1,080

NPV using a 9% discount rate = -$132,474.87

3 0

2 years ago

What is business intelligence? 1) Raw facts that describe the characteristics of an event or object. 2) Data converted into a me

Arisa [49]

Answer:

Explanation:

BI is about getting data from different sources and turn it into meaningful business insights for decision makers.

4 0

2 years ago

May 31, Novac Corp. Has net sales of $415,000 in cost of goods available for sale of $286,000 compute the estimated cost of the

BabaBlast [244]

Answer:

$24,550

Explanation:

Computation for the estimated cost of the ending inventory

Net Sales = $415,000

Gross Profit rate= 37%

Cost of goods Sold = 100%- 37% = 63%

Cost of Goods Sold =$415,000*63% = $261,450

Cost of Goods Available for sale = $286,000

Using this formula

Estimated Cost of Ending Inventory= Cost of goods available for sale - Cost of Goods Sold

Let plug in the formula

Estimated Cost of Ending Inventory = $286,000-$261,450

Estimated Cost of Ending Inventory = $24,550

Therefore the estimated cost of the ending inventory is $24,550

5 0

2 years ago

One observation we made this week was that consumer surplus is maximized at a price of zero. We also learned that this is imprac

scZoUnD [109]

Answer:

The description of the given problem is described in the below explanation segment.

Explanation:

A supply as well as the demand-based economy with hardly any government regulation whilst general populace provisioning is fully controlled by the government, which would be aimed at satisfying person's welfare programs, is considered as the free market.

For commodities like the slightly elevated internet, we support free market rather than governmental provision for the aforementioned purposes:

In something like a free market system, buyers decide the final success or failure of the items.
Throughout the event of general populace procurement then perhaps the capitalist economy, there seem to be numerous failures such as time delays as well as misinformation.

8 0

2 years ago

Timmy has almost $2.00 in allowance money that he wants to spend on candy. he has two favorite candies, one selling at $0.15 a p

jolli1 [7]

Let's call
x = Amount of candy sold at $ 0.15.
y = Amount of candy sold at $ 0.08.
We must make the following system of equations:
x + y = 17
0.15x + 0.08y = 1.92
Solving the system of equations:
0.15x + 0.08 (17-x) = 1.92
0.15x-0.08x + 1.36 = 1.92
0.15x-0.08x = 1.92-1.36
0.07x = 0.56
x = 0.56 / 0.07 = 8
On the other hand,
x + y = 17
8 + y = 17
y = 17-8 = 9
Finally, Timmy bought 8 pieces of candy for $ 0.15.

3 0

2 years ago