What is 6 cubed so like 6 with exponent 3

An investor has sold 1 ABC Jan 50 Call and has bought 1 ABC Apr 60 Call. This is a:________.

Kitty [74]

Answer:

diagonal spread

Explanation:

Spread is basically a sale and purchase of a call. So here the the types of spreads determine the relationship between the strike price and the expiration dates of all options involved in the trade.

In this example investor has sold 1 ABC Jan 50 Call and has bought 1 ABC Apr 60 Call. This means he bought the option ABC with the longer expiration date and with a higher strike price and sold the option ABC with the near expiration date and the lower strike price. Here both the expiration and strike price are different. So this is an example of diagonal spread.

The option horizontal spread is incorrect because it is a spread that depicts the difference in expiration dates but strike price is the same. Here both the expiration and strike price are different.

The option straddle is incorrect because it is a spread in which both options have the same expiry date and same strike price. Here both the expiration and strike price are different.

The option dialogue spread is not a valid option too.

The option Combination is also suitable because this is an example of Combination and combinations include option spread trades such as vertical spreads, horizontal spreads, and diagonal spreads.

So the most suitable option is diagonal spread which is an example of Combination.

5 0

3 years ago

A form of economic organization that relies primarily on private ownership of productive assets, freedom of exchange, and market

Sedaia [141]

capitalism.

<h3>Describe capitalism?</h3>

Capitalism is an economic system that relies on private ownership of the means of production and their commercial application. Key components of capitalism include capital accumulation, competitive markets, the pricing structure, private property, the recognition of property rights, voluntary exchange, and wage labor.

<h3>An economic system is what?</h3>

A government or community can utilize an economic system as a tool to plan and distribute resources, services, and products across a region or country. Economic systems are in charge of the production factors like labor and capital.

<h3>What exactly does a "pure market economy" entail?</h3>

Government does not significantly interfere in important economic areas and has minimal control over resources. The sources of regulation, on the other hand, are the law of supply and demand and human conduct. Most of what we know about the market economy comes from theory. There isn't a true pure market system, to put it another way.

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4 0

2 years ago

Goldfarb Company manufactures and sells toasters. Each toaster sells for $23.55 and the variable cost per unit is $16.15. Goldfa

IRINA_888 [86]

The contribution margin per unit is $7.4.

<h3>What is the contribution margin?</h3>

The contribution margin is the percentage of a product's sales revenue that isn't consumed by variable costs and goes toward paying the firm's fixed expenses.

One of the main components of break-even analysis is the idea of contribution margin.

Labor-intensive businesses with limited fixed expenses typically have low contribution margins, whereas capital-intensive, industrial corporations typically have high contribution margins.

Contribution margin per unit = Revenue per Unit ₋ Variable Expenses per Unit.

Contribution margin per unit = $23.55 ₋ $16.15

Contribution margin per unit = $7.4

Therefore, the contribution margin per unit is $7.4.

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6 0

2 years ago

The May bank statement for Rental shows a balance of $6,300, but the balance per books shows a cash balance of $8,200. Other in

Sphinxa [80]

The items that will require journal entries to update the balance in the Cash account of the Rental Company are <u>items 1, 2, and 4</u>, as follows:

<h3>Adjusting Journal Entries:</h3>

Debit Utilities Expense (Electric) $200

Credit Cash $200

Debit Cash $480

Credit Note Receivable $450

Credit Interest $30

Debit Bank service charges $50

Credit Cash $50

<h3>Transaction Analysis:</h3>

1. Understatement of a check for the electric bill by $200 ($220 - $20)

2. Note Receivable $450 Interest on Note Receivable $30

4. Bank service charges $50

<h3>Cash Account Adjustments:</h3>

Utilities Expense (Electric) $200 Cash $200

Cash $480 Note Receivable $450 Interest $30

Bank service charges $50 Cash $50

Thus, the items that will require journal entries to update the balance in the Cash account of the Rental Company are <u>items 1, 2, and 4.</u>

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8 0

2 years ago

Jay John Inc. recently paid a $40,000 installment on its 20-year mortgage. Out of the $40,000 total payment, $12,000 went toward

weqwewe [10]

Answer:

Explanation:

The journal entry is shown below:

Interest expense A/c Dr $28,000

Mortgage payable A/c $12,000

To Cash A/c $40,000

(Being the installment is paid for cash and the remaining balance is debited to the interest expense account)

Simply we debited the interest expense and mortgage payable account and credited the cash account as cash is paid

5 0

4 years ago