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sukhopar [10]
3 years ago
11

The price of a stock on February 1 is $48. A trader sells 200 put options on the stock with a strike price of $40 when the optio

n price is $2. The options are exercised when the stock price is $39. The trader's net profit or loss is
Business
1 answer:
gizmo_the_mogwai [7]3 years ago
3 0

Answer:

$200

Explanation:

Given that,

Price of a stock on February 1 = $48

Trader sells = 200 put options

Strike price = $40

Option price = $2

Options are exercised when the stock price = $39

Net profit (Loss):

= Stock price - Strike price + Premium

= $39 - $40 + $2

= $1

The net gain for one put option is $1.

Therefore, the total net gain for 200 put options is as follows:

= 200 × $1

= $200

Hence, the trader's net profit is $200.

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Maryland Incorporated produces toys. Total manufacturing costs are $ 370 comma 000 when 60 comma 000 toys are produced. Of this​
ludmilkaskok [199]

Answer:

The total production costs when 105 comma 000 toys are​ produced are $467,500

Explanation:

Manufacturing or production costs are the costs which is incurred to Manufacture / produce the products being sold.

Total Manufacturing Cost = $370,000

Variable cost = $130,000

Variable cost per unit = $130,000 / 60,000 = $2.17

Total Fixed Cost = Total Manufacturing cost - Variable cost

Total Fixed Cost = $370,000 - $130,000 = $240,000

Total Production cost = Variable cost + Fixed Cost

Total Production cost = ( 105,000 x 2.17 ) + $240,000

Total Production cost = $227,500 + $240,000 = $467,500

6 0
3 years ago
Julius asks Rachel if she would like to sell her boat. Rachel privately has no interest in selling her boat, and believes that J
ryzh [129]

Answer:

C) formed a valid contract because Rachel's outward expressions showed the formation of a contract.

Explanation:

A valid contract is a binding and enforceable agreement, where all parties are legally bound to perform the contract.

Probably the most important part of a contract is the existence of an offer and acceptance. Once a valid offer is accepted, it binds the parties into a valid contract.

In this case, Rachel accepted Julius´s offer to buy her boat, so an offer and acceptance exists.

5 0
3 years ago
Sam and Teresa run a catering business in which they have two major tasks: getting new clients and preparing food for events and
Sergio [31]

Answer:

The number of new clients will increase by

12/3 = 4

Therefore, the number of new clients will increase by 4.

Explanation:

In getting new client, Sam takes 5hours, while Terasa takes 3hours.

In preparing food, Sam takes 10hours while Teresa takes 12hours.

It can be seen that Sam has absolute advantage and comparative advantage in preparation of food, while Tesesa has absolute advantage and comparative advantage in getting new client.

Sam with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and Teresa will use the freed-up time from not preparing food for one event to get more clients.

Teresa will free up 12hours she used in the preparation of food.

Since she use 3hours to get new client, She will get

12/3, which equals 4 number of clients

8 0
3 years ago
Internal information provides an understanding of factors outside of the organization
svp [43]

Answer:

false

Explanation:

Internal information is the information developed from activities that occur within the organization.

Definition

4 0
3 years ago
Chapter 11: Sport Sponsorship
Jet001 [13]

There are different kinds of activities.  The process of undertaking activities to enhance and service a sponsorship once a sponsorship deal has been agreed to

<h3>What are sponsorship activities?</h3>

Sponsorships are is known to be the financial or also called an in-kind support of any kind of activities.

Businesses often sponsor things such as events, trade shows, groups, etc. so that they can reach also their business goals and boast their competitive advantage.

Learn more about  sponsorship activities from

brainly.com/question/9433922

6 0
2 years ago
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