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bezimeni [28]
4 years ago
11

Your client holds 1 listed XYZ August 50 call. A cash dividend of $2.50 per share is declared. On the ex-date, the terms of the

call are: (A) Exercise Price: $47.50, Number of Underlying Shares per Contract of XYZ: 102 (B) Exercise Price:$50.00, Number of Underlying Shares per Contract of XYZ: 100 (C) Exercise Price: $52.50, Number of Underlying Shares per Contract of XYZ: 97 (D) Exercise Price: $52.50, Number of Underlying Shares per Contract of XYZ: 102
Business
1 answer:
erik [133]4 years ago
3 0

Answer:

(B) Exercise Price:$50.00, Number of Underlying Shares per Contract of XYZ: 100

Explanation:

The declaration of the dividends will not affect the exercise price of the call, it will still be $50 per stock. Also, the number of stocks included in the call will not change because a cash dividend is declared, they will still be 100 stocks included in the call contract. The cash dividend affects the market price of the stock, but not the call or put options.

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The Thunder Dan's Corporation's purchases from suppliers in a quarter are equal to 65 percent of the next quarter's forecasted s
stealth61 [152]

Answer:

Total disbursement for Q2 $579,43‬

Explanation:

We will assume the sales are purchase are uniform during the year.

therefore days 1-30 sales are paid within the quarter

and day 31 to 90 are paid the next quarter:

Q1:

Purchase for Q2 x 65% = 660 x 65% = 429

Q2:

dividends = 60 dollars

wages taxes and other 660 x 16% = 105.6‬

<u>payment to suppliers</u>

remainder of next quarter:

660 x 65% x 2/3 =286

payment of this quarter purchase:

590 x 65% x 1/3 = 383,5 x 1/3 = 127,83

Total disbursements:

60 + 105.6 + 286 + 127.83 = 579,43‬

5 0
4 years ago
Which word or phrase below is an antonym for concrete? proven data-driven physical presence abstract
9966 [12]

Answer: i would say physical presence or abstract

6 0
3 years ago
odarta Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermine
kupik [55]

Answer:

$144 unfavorable

Explanation:

The computation of the overall fixed manufacturing overhead volume variance for the month is shown below:

But before that following calculations need to be done

Budgeted manufacturing overhead is

= 6600 × $1.20  

= $7,920

And,

Manufacturing overhead applied is

= Standard hours × Predetermined overhead rate

= 6480 × $1.20 = $7,776

So, fixed manufacturing overhead volume variance is

= Fixed overhead applied - budgeted fixed overhead

= $7,776 - $7,920

= $144 unfavorable

7 0
3 years ago
Bette's Breakfast, a perfectly competitive eatery, sells its "Breakfast Special" (the only item on the menu) for $5.00. The cost
Tamiku [17]

Answer:

Bette's Breakfast should increase the price or change the cost´s structure.

Explanation:

Bette's Breakfast should increase the price to get any profits because the total of the cost of serving that breakfast is higher than the price.  

Profit= price* sales -((Variable cost * sales) +Fixed cost)

Other option is changing the structure of cost per meal.

4 0
3 years ago
Read 2 more answers
What is the argument commonly used by supporters of a state income tax? A. It will probably be quite regressive. B. It is a fair
kolbaska11 [484]

Answer:

D. It is a fair and more reliable source of revenue.

Explanation:

Their tax base is reliable and the amount is tie to the person or business income, so more tax implies that the person is having higher income as well. This make it fair, because high-income taxpayers contribute more nominal amount than low-income taxpayers, but the rate is the same for both.

6 0
3 years ago
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