Answer:
A. $9.00
B. $3.00
C. Decrease
Explanation:
a. Calculation to determine the intrinsic (minimum) value of this warrant
Using this formula
I = (M – E) × N
Where,
I represent Intrinsic value of a warrant
M represent Market value of common stock
E represent Exercise price of a warrant
N represent Number of shares each warrant entitles theholder to purchase
Let plug in the formula
I=($36 – $30) *1.5
I=$6*1.5
I = $9.00
Therefore the intrinsic (minimum) value of this warrant is $9.00
b. Calculation to determine the speculative premium on this warrant
Using this formula
S = W – I
Where,
S representSpeculative premium
W represent Warrant price
I represent Intrinsic value.
Let plug in the formula
S=$12-[($36 – $30) *1.5]
S=$12 – $9
S = $3.00
Therefore the speculative premium on this warrant is $3.00
c.What should happen to the SPECULATIVE PREMIUM as the expiration date approaches is for it to DECREASE and thereby approach $0.
Treasury bonds and Treasury payments among 1926 and 2012 display that inventory returns have been much less unstable than those of bonds and payments.
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Treasury payments, which are money marketplace devices, are short term debt instruments issued by using the government of India and are presently issued in three tenors.
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Answer:
D. a penalty clause.
Explanation:
A penalty clause -
The clause is usually mentioned in some specific contracts ,
The clause enables one of the party ( usually the weak one ) , to get compensation during the breach of contract , as in most of the cases the situation get downs very costly fight between the parties , hence in order to avoid this condition , a penalty clause is usually inserted in the contract .
The penalty clause can be unenforceable , if the requirements are not fulfilled , hence need to be aware before making the contract .
Hence , from the given scenario of the question ,
The correct option is , D) a penalty clause.
Answer:
57.14%
Explanation:
Missing word <em>"25 percent."</em>
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Gain on the stock = (150*$80) - $10,500
Gain on the stock = $
12,000 - $10,500
Gain on the stock = $1,500
If Margin requirement is 25%, The Margin = 10,500*25% = $2,625
Return on Investment = $1,500/$2,625 * 100 = 0.571429 * 100 = 57.1429% = 57.14%
Answer:
a.
$52,200
b.
$51,156
Explanation:
Note are issued n the face value or the discounted value. When price of the note is the same as face value then it is known as issued on par/face value.
When price of the note is the lower as face value then it is known as issued on discounted value.
a.
Proceeds from the note issued is the price of the note at which it is issued. As the note is issued on the face value of $52,200, so the proceeds is the same value.
b.
Discount value = $52,200 x 12% x 60/360 = $1,044
Proceeds = Face value of the note - Discount on the note = $52,200 - $1,044 = $51,156
