The buyer of a put expects the price of the underlying stock to rise is a. true
<h3>
What does buying a put mean?</h3>
- Short selling and put options are fundamentally negative methods used to speculate on the underlying securities or index's possible decline.
- Short selling and buying put options are both bearish techniques that increase in profitability when the market falls.
- Short selling is selling a security that the seller does not own but borrows and then sells in the market, with the possibility for substantial losses if the market rises.
- Purchasing a put option grants the buyer the right to sell the underlying asset at the price specified in the option, with the maximum loss being the option premium paid.
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Answer: a. 10 utils
Explanation: The marginal utility from consumption of the third unit of goods is gotten by taking the difference between the total utility derived from three units of goods and the total utility derived from two units of goods.
Total utility from three units = 84 utils
Total utility from two units = 74 utils
84 - 74 = 10 utils which is the marginal utility of the third unit.
Answer:
Break-even point in dollar sales
= <u>Fixed cost</u>
Contribution margin ratio
Product T
Contribution margin ratio
= <u>Contribution</u>
Sales
= <u>$408,000</u>
$1,020,000
= 0.40
Break-even point in dollar sales
= <u>$258,000</u>
0.4
=$645,000
Product O
Contribution margin ratio
= <u>$816,000</u>
$1,020,000
= 0.80
Break-even point in dollar sales
= <u>$666,000</u>
0.80
= $832,500
Explanation:
In this case, we need to calculate the contribution margin ratio of the two products, which is the ratio of contribution to sales. Then, we will determine the break-even point in dollar sales, which equals fixed cost divided by contribution margin ratio.
Answer:
Option (a) is correct.
Explanation:
Given that,
Net income = $600,000
Difference between fair value and carrying value = $112,500
70%-owned subsidiary of Pickle Corporation.
Non-controlling interest in net income:
= [Net income - Difference between fair value and carrying value] × 0.3
= [$600,000 - $112,500] × 0.3
= $487,500 × 0.3
= $146,250